LAN - TAM merger set to be complete with in eight months

Chile's flagship airline LAN expects to complete a merger with Brazil's TAM within six to nine months, after signing a deal with final terms and conditions. Both airlines announced their plans in August and await regulatory approval in their countries. Analysts reckon LAN is effectively acquiring the Brazilian airline as the Cueto family is set to emerge with the major stake in what would be one of the world's top carriers. The Cueto family is the main shareholder of LAN, considered one of Latin America's most profitable airlines.

LAN confirms orders of 50 A320's

Chile's dominant airline LAN said on Tuesday it has ordered 50 Airbus A320 planes with a list price of around $4.15 billion as the carrier seeks to expand its operations in Latin America. LAN plans to double its fleet with an investment of about $7.7 billion by 2018. The 50 short-haul planes would be incorporated in its fleet between 2012 and 2016 and used in regional and domestic routes in Latin America. LAN has placed orders for 95 A320 planes that it would be delivered between 2010 and 2016, and might sell 15 A318 planes, a company spokeswoman reported to press.

LAN was one of the Latin American companies that made large commercial plane orders at the Farnborough Airshow on Tuesday. The Chilean carrier, one of the region's profitable airlines, has gained passenger traffic, rising 15.5 percent in June from a year earlier after growing 13.9 percent in May. In December, LAN signed a contract to buy 30 new Airbus A320 short-haul planes worth around $1.97 billion.

Isreal's El Al airlines cancels orders four B777

El Al airlines has canceled orders of 4 B777-200 which was placed in 2008 before the global recession. The dipping passenger traffic has prompted the airline to cancel the order. The airline also confirmed that the advance payment made for the order of these aircraft will be adjusted in future deliveries.
Also LAN airlines was reported saying that it would not take deliveries of 4 B767 which they had ordered, instead differ it to B787's and is expected to receive 2 in 2011, 3 in 2012 and 5 in 2013.