LAN to Buy 25 Medium-Range Airbus Planes

SANTIAGO, Chile – Chilean airline LAN Chile plans to buy 25 new Airbus A318 and A319 aircraft in a deal valued at $750 million.

The first planes are expected to be delivered next year. In addition, the privately owned company said in a statement late Wednesday that its board approved options for another 15 similar aircraft.

LAN already operates 19 Airbus planes, and had previously ordered nine A19 jets that are expected to be delivered through 2008. The latest order is part of an effort to replace the Chilean carrier’s older Boeing 737-200 fleet.

LAN accounts for 80 percent of the domestic market in Chile and flies to most of the Americas, and to Spain and Germany in Europe. Through subsidiaries it operates domestic routes in Peru and Argentina.

The company last year reported earnings of $163.3 million, nearly double its 2003 income.

LAN is part of the oneworld airline alliance, which counts Aer Lingus, American Airlines, British Airways and Iberia among its members.