Latam has several activities under development to improve its cost structure—one of which is evaluating its third-party MRO strategy. “Today we insource a lot but “we need safety buffers,” says Francisco Sanchez Arrieta, VP technical strategic sourcing and supplier management for the group.
To gain that buffer, the airline either needs to “extend our capabilities or partner with someone to provide us flexibility when we need to send aircraft outside,” he says.
The airline also will continue challenging its sourcing and inventory management options, says Sanchez. “We’re seeing a positive trend for alternatives now,” he adds.
In 2018, Latam plans to keep its short-haul aircraft count at 226, although the quantities of some of its all-Airbus narrowbody fleet will shift. It widebody fleet, however, will increase to 76 from 73, says Sanchez. Two Boeing 777s and one 7667 will exit and six Airbus A350s will enter the fleet.
It 10 existing Boeing 767 freighters will remain flying for the cargo operation.
Latam’s average fleet age is 7.5 years.
Latam, the largest Latin American airline in terms of passengers, flies almost half of the passengers in South America.
It hubs are located in Sao Paulo, Brazil; Lima, Peru; and Santiago, Chile.