LATAM and GOL Nearing Embraer Orders

LATAM Airlines Brasil (JJ) and GOL Linhas Aéreas Inteligentes (G3) are reportedly in advanced negotiations with Embraer to place separate orders for new aircraft, according to Aloizio Mercadante, president of the Brazilian development bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES). Mercadante highlighted that while commercial secrecy prevents revealing specific details, the discussions are progressing well, as reported by Reuters.

Francisco Gomes Neto, Embraer’s chief executive, indicated last month that both carriers are considering a potential order for Embraer’s E2 jets. This follows an announcement in April by Brazil’s president, Luiz Inácio Lula da Silva, that the government supports the acquisition of Embraer-made jets by the two airlines.

Currently, neither LATAM Airlines Group nor GOL Linhas Aéreas operate any Embraer aircraft. LATAM Brasil’s fleet consists of 160 aircraft, including Airbus A319-100s, A320-200s, A320-200Ns, A321-200s, A321-200NXs, Boeing 777-300ERs, and 787-9s. GOL, which is undergoing US Chapter 11 bankruptcy restructuring, operates a fleet of 139 planes, including Boeing 737-700s, 737-8s, 737-800s, and 737-800(BCF)s.

GOL stated that it “is always evaluating options for other models to grow its operations.” LATAM declined to comment, though CEO Roberto Alvo recently mentioned to ch-aviation that the group is unlikely to revert to a diverse fleet composition it once had.

Azul Linhas Aéreas Brasileiras and the Brazilian Air Force/Força Aérea Brasileira are the primary operators of Embraer jets in Brazil, with a combined total of 58 planes on order, including forty-nine E195-E2s and nine KC-390s. The potential orders from LATAM and GOL would further solidify Embraer’s presence in the Brazilian aviation market.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com, Reuters.com