Reuters
Aerolineas plans $558 mln to upgrade Boeing fleet
Thursday May 27, 3:30 pm ET
BUENOS AIRES, Argentina, May 27 (Reuters) - Aerolineas Argentinas, the flagship carrier of Argentina, said on Thursday it will invest $558 million over the next five years to upgrade its fleet of Boeing Co. aircraft (NYSE:BA - News).
Aerolineas will replace its current fleet of 737s and 747s with 49 B-737/300, B-737/500 and B-747/400 planes to give it the largest Boeing fleet in Latin America, according to a joint statement from both companies.
Aerolineas, which turned its first operating profit in 25 years in 2002, will be able to increase its seats by 50 percent with the new planes on both domestic and international routes, the statement said.
Aerolineas is controlled by private Spanish consortium Air Comet and has plans to list on Argentina's stock market by floating a 25 percent stake in the company.
In 2003, Aerolineas posted a profit of $44 million, cashing in on a tourism boom following the devaluation of the Argentine peso during the economy's collapse in early 2002.