David Learmount/SANTIAGO

LanChile is to decide on acquiring long-range widebody aircraft by the end of July, says chief executive Enrique Cueto. Chile's leading airline, Lanchile is also expected to decide whether to join the American Airlines/British Airways-led oneworld alliance next month.

The requirement for the new aircraft has been generated by LanChile's plan to begin Santiago-Madrid, Spain, non-stop services by the fourth quarter of 2000 to rival the service offered by Spanish carrier Iberia. The LanChile Boeing 767-300ERs that currently ply the route have to stop in Sao Paulo, Brazil.

The long range aircraft choice is between the Airbus Industrie A340 and Boeing 777, says Cueto, adding that he is still open to both offers. Originally, the first firm order was for two aircraft but bidders have since been told the requirement has been increased to seven plus seven options and includes rollover of LanChile's 14 767-300ERs. Airbus has offered the A340-300 with the option of later rolling over to the A340-600. A number of leasing companies including ILFC and GE Capital Aviation Services have also been approached for bids, along with the two manufacturers.

Last year, LanChile joined forces with two other South American carriers to negotiate for re-equipment of their intra-Latin American and domestic routes. The total order for about 100 aircraft went to the Airbus A320.

Meanwhile, Cueto reveals, a favourable decision on LanChile's entry to the American Airlines/British Airways-led oneworld alliance is expected in May.

Cueto anticipates the decision to approve LanChile's membership will be confirmed at the next oneworld alliance meeting on 14 May. The airline already codeshares with oneworld partners Qantas and Canadian Airlines, and its alliance with American Airlines only requires approval by the US Department of Transport, says Cueto.

Source: Flight International