WHY IT RATES: New administration at Aerolineas Argentinas will honor its debt with Boeing and in the process, incorporate more modern aircraft. - Eric Bowman, TravelPulse Senior Editor
With the intent to keep on working to reduce the deficit and elevate the passenger experience, Aerolineas Argentinas has announced today, together with Boeing and CFM International, the execution of an agreement allowing the Argentine flag carrier the incorporation of more efficient, last-generation aircraft in the following years.
This agreement resumes negotiations where Aerolineas Argentinas has a clear idea to cut down subsidies and asked to reschedule the delivery of aircraft and renegotiate the contracts for several months.
As part of this agreement, Aerolineas Argentinas renegotiated a technical debt under the agreement, which was inherited from the previous administration, and in turn and as part of the same agreement, incorporates the first 737 MAX for Latin America in November and December, 2017. The agreement ratifies the incorporation of the first 6 737-800 NG of this new agreement (Aerolineas already has 800NGs) between October 2016 and October 2017. On Oct. 15, the first such aircraft was delivered.
The Boeing 737 MAX 8 were designed based on the robust and efficient basis of the Boeing 737NG (at present Aerolineas has 40 aircraft of this type including 700 and 800 models). The new 737 MAX 8 will allow Aerolineas Group to save 14 percent in fuel if compared to previous models, since it has a new engine technology.
The 737 MAX 8 is a modern, efficient and sustainable aircraft, capable of flying farther and it has 40 percent smaller noise footprint than the previous Boeing aircraft. On the other hand, some innovations that are already present in NG models included, such as the Boeing Sky lightening system for a better comfort in the different stages of the flight.
"After negotiating for the last six months, this agreement allows us to continue incorporating aircraft to comply with the Strategic Plan to make Aerolineas Group a sustainable company, with zero deficit. Furthermore, it gives us a more realistic payment scenario at a moment where we have to be extremely cautious when deciding how to use the money," said Pablo Miedziak, Financial Director of Grupo Aerolineas and main negotiator of this agreement.
Van Rex Gallard, Sales Vice-president for Latin America, the Caribbean and Africa for Boeing added: "this step with Aerolineas allows us to go on consolidating the relationship with one of our most strategic partners in the region, and it also allows the Argentine flag carrier to be first in Latin America to incorporate the MAX model, which is an improved and more efficient aircraft."
From CFM International, Douglas J. Izarra, Sales Vice-President for the Americas, expressed "CFM is pleased to have worked with Aerolineas Argentinas to develop a state of the art technological solution allowing the company to continue providing an exceptional service to its passengers. The CFM56-7B has been an actual warhorse in its fleet and we hope that the fuel efficiency and the high reliability of the LEAP-1B engine will be an even greater asset for Aerolineas."
Following the arrival of the second aircraft within the framework of this agreement, Van Rex Gallard, Boeing's Sales Vice-president for Latin America, the Caribbean and Africa; Douglas J. Izarra, CFM International Sales Vice-president for the Americas; and Pablo Miedziak, Financial Director at Grupo Aerolineas participated in the signature of the agreement in Buenos Aires.
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