Santiago, Chile, February 25, 2014– LATAM Airlines Group S.A. and its subsidiaries, (“LATAM Airlines Group” or “the Company”) (NYSE: LFL / IPSA: LAN / Bovespa: LATM33), the leading airline group in Latin America, announces that that it reached an agreement with Aircastle to enter into sale and leaseback transactions involving eight of TAM’s Boeing 777-300ERs. <?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office"?>
The first group of four aircraft will be sold to Aircastle and leased-back early in the second quarter of 2014 for an average lease term of five years. The second group of aircraft will be purchased by Aircastle once the existing financings are repaid and will be leased-back by the Company with leases expiring in 2017 and 2018.
This transaction is aligned with the Company’s objective of replacing its long haul fleet by aircraft of new technology, which will provide significant operating cost reductions as well as an improved product for our premium business class passengers, while also reducing the exposure to the Brazilian real in TAM’s balance sheet.
News Source : LATAM Airlines Group announces sale and leaseback agreement with Aircastle