Business

Chile's LAN in Big Deal for Boeing 787s, 777Fs

posted: 05 November 2007 04:28 pm ET

: Santiago, Chile-based LAN Airlines, which controls a group of Latin American airlines, has ordered 26 Boeing 787s and will lease six more. The airline also has ordered two Boeing 777 Freighters and will lease another two. The 787s are likely to replace the Boeing 767-300ERs that now form the backbone of LAN Airlines' long-haul fleet. Credit: Boeing Photo

Chile's LAN Airlines has ordered 26 Boeing 787 Dreamliners and is to lease six more, marking the largest 787 acquisition to date by a Latin American airline.

Santiago-based LAN also has committed to acquiring four Boeing 777 Freighters -- two from Boeing and two to be leased from GE Commercial Aviation Services (GECAS).

Boeing values LAN's order for 26 Dreamliners -- which consists of a mix of 787-8s and 787-9s -- at approximately $4.5 billion at list prices, though it is likely that LAN has negotiated price discounts. LAN will lease six 787-9s from International Lease Finance Corp. in addition to the 26 Dreamliners due directly from Boeing.

At list price, the two 777 Freighters that LAN has ordered are valued at approximately $ 500 million. The two direct-purchase 777 Freighters were previously attributed to an unidentified customer on Boeing's orders and deliveries Web site.

To date, two other Latin American carriers have committed to the 787 Dreamliner: Aeromexico, which has agreed deals to lease three and order two; and Colombia's Avianca, which has ordered 10.

The Boeing 787 is scheduled to enter service in 2008, though Boeing recently announced that the planned dates of the aircraft's first flight and of the first delivery of a 787 to a customer had both slipped about six months. Now launch customer All Nippon Airways is due to receive its first 787 late in 2008, rather than in May as Boeing originally planned.

Including LAN Airlines' order, 51 airlines have logged orders for 736 Boeing 787s, which Boeing says makes the Dreamliner the most successful commercial jet launch in history.

The 777 Freighter is the sixth and newest member of the 777 family of airplanes. It is based on the 777-200LR passenger model and is designed to facilitate easy interlining of cargo containers and pallets with Boeing 747 freighters. To date 11 customers have ordered 82 Boeing 777 Freighters. The 777 Freighter scheduled to enter service in the fourth quarter of 2008.

LAN Airlines also is a sizeable operator of the Airbus A320 family of narrowbody aircraft, with A319s, A3320s and A318s in its fleet.