Three major Latin American carriers, TAM of Brazil, TACA Group of El Salvador and LanChile, are in final negotiations with Airbus Industrie to place a joint order for up to 130 A320-family aircraft. The deal should be concluded by March.

LanChile confirms that it has already signed a letter of intent with Airbus and that it "-is in the final stages of negotiation for what will be the largest-ever single order in the history of the airline". LanChile adds that it decided to join TAM and TACA as the size of the combined order puts it in a stronger negotiating position on pricing and conditions from Airbus. The manufacturer declines to comment on the negotiations.

LanChile says that it hopes to finalise and sign a deal for 20 A320-family aircraft by March, with the types being acquired directly from Airbus rather than from one of the operating-lease companies. An engine selection has yet to be made.

LanChile, which also controls domestic airline Ladeco, expects deliveries to begin in the fourth quarter of 2000 and to be completed in 2005. The new aircraft will replace ageing Boeing 737-200s.

The division between the remainder of the order has not been revealed, although the TACA Group, which controls Aviateca, Lacsa, Nica and Sahsa, is understood to be planning an order for at least 30 A319s. The airline and its Lacsa subsidiary already operate A320s. TAM is believed to be about to order some 50 A319s.

Source: Flight International