Carriers Should Make Bulk-Buy Savings, Says TAM

Airlines should band together to broker better deals on purchases, insurance and maintenance contracts, says Jose Maluf EVP of fleet and engines at TAM.

Speaking at ISTAT Americas earlier this week, Maluf noted that many airlines – even those sharing the same airline alliance – see each other as competitors, meaning they ignore the "huge potential" of purchasing as a collective.

Meanwhile, airline groups, such as IAG, gain savings and early delivery slots by negotiating large deals on behalf of their subsidiaries.

Henri Croupron, who moderated the airline panel, raised the possibility of alliances bulk-buying aircraft, delivering lower costs per unit to its airline members.

Another carrier that seems onboard with this is Lufthansa. Its VP of fleet management, Nico Buccholz, questioned: “If you find a mutual win-win situation, why don’t you team up?"

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