Brazil’s TAM Linhas Aereas has signed a memorandum of understanding (MOU) to buy 32 A320s, including 22 A320neos, as well as placing an order for two Boeing 777s.
With this order, TAM becomes the A320neo launch customer for Latin America, with Virgin America the launch customer.
TAM has not yet decided between the CFM International LEAP-X and Pratt & Whitney PurePower PW1100G to power its A320neos.
“Our order for industry leading fuel efficient aircraft opens a world of possibilities for TAM, thanks to its substantially increased range capability,” said Líbano Barroso, chief executive officer of TAM Airlines. “Ordering more A320s allows TAM to reduce costs and further improve our environmental performance.”
On the 777-300ERs order TAM Holdings Chief Executive Officer Marco Antonio Bologna said: “These additional airplanes will help us expand our long-haul service capability to meet the growing market demand in Brazil and beyond.”
Meanwhile, TAM has reported a fourth-quarter net profit of 150.6 million Brazilian reais ($90.5 million), up 7.9% from 139.6 million reais a year earlier.
TAM said that earnings before interest, tax, depreciation, amortization and aircraft rental costs, or Ebitdar, were 507 million reais, up from 373.3 million reais a year earlier. Ebitdar margin was 15.7%, up from 15% in the fourth quarter of 2009. Operational expenses totaled 3 billion reais in the fourth quarter, up from 2.4 billion reais in the year-earlier period.
For the whole of 2010, the airline reported a net profit of 637.4 million reais, down from 1.24 billion reais in 2009.