Why LATAM Airlines Chose the E195-E2 Over the A220

The news of LATAM Airlines' mega-order for up to 74 Embraer E195-E2 aircraft came as a surprise in many aviation circles. In the experts' bets, the Airbus A220 seemed to be the natural candidate. After all, if your single-aisle fleet is already an army of Airbus A320 aircraft, isn't it logical to stick with their cousins?

But the logic of outsiders rarely applies to decisions worth hundreds of millions of dollars. LATAM's choice not only crowns the E195-E2 as the king of its category in the region but also exposes the uncomfortable reality of the A220: it still doesn't have a single operator in Latin America. How is this possible?

The "Loyalty" to Airbus and the Illusion of Commonality

At first glance, the move for LATAM seemed obvious: buy the A220 to keep everything under the Airbus umbrella. Fewer headaches, a single phone number to call. But this is where the plot thickens.

In aviation, the word "commonality" is sacred, especially when it comes to pilots. The ability to move crews from an A320 to an A321neo with minimal training saves millions. The problem is that the A220, Airbus's "adopted child" (born as the Bombardier C-Series), doesn't play by the same rules. It has a different pilot type rating than the A320.

With this, the biggest benefit of staying with the same manufacturer vanishes. For an airline, training a crew for the A220 is almost like training them for a competitor's aircraft. The main selling point weakens to the point of becoming almost irrelevant.

Another sensitive point is Airbus's production: while Embraer is not exempt from supply chain issues, delivery times are reasonable in an industry that shows weaknesses in maintaining current production rates and has very little flexibility to accommodate new orders.

Home-Field Advantage Always Matters

Now, let's look at Embraer. Having the factory, engineers, and spare parts just a flight away in Brazil is no small detail for the region's largest airline group.

The fact that they are willing to bear the cost of introducing a new aircraft family in their main market, instead of going for the A220, is the clearest proof that Embraer's package was, quite simply, superior. The deal they put on the table, combined with the advantages of proximity and Brazil's political influence, outweighed any other consideration.

We also shouldn't forget that in August 2024, LATAM executives, including its CEO, Roberto Alvo, met in Brazil with President Lula da Silva, and there was talk of a two-billion-dollar investment in the Brazilian economy. 

A month earlier, the president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, had mentioned advanced conversations with LATAM and GOL, as part of a state plan to increase Embraer's presence in the fleets operating in the neighboring country.

A Scalpel, Not a Hammer

In the end, it all comes down to using the right tool. LATAM is not looking for a plane that can simply fly; it's looking for one that makes money. With plans to open up to 35 new routes, it needs a "scalpel" to enter smaller markets profitably.

The Embraer E195-E2 is exactly that: an aircraft acclaimed for its efficiency on short and medium-haul routes. It allows testing new destinations without the risk of operating a current A320 at half capacity. It is the definition of "capillarity."

With the A220 the gap narrows, but there are still slight differences that can be key, as we can see in this comparison:

So, is the A220 a bad plane? Not at all. It's extraordinary, and the airlines that operate it in other parts of the world love it (as do the passengers). It's just that in this strategic chess match being played in the skies of South America, Embraer knew how to move its pieces better on its own board. And LATAM, with a calculator in hand, agreed.

This graph gives us an overview of the pending orders and deliveries for the A220 and E-Jets E2 families to date, which shows that, regardless of what is happening in Latin America, Airbus's Canadian child is quite successful.

In any case, the A220 still has opportunities in the region. To begin with, the Uruguayan startup SUA could be on track to become the first operator, which could also have a very interesting projection according to its plans. Another startup that has mentioned the A220 was the Argentine Domus Airways.

Temas

• LATAM Airlines
• A220
• E195-E2

AUTOR

Edgardo Gimenez Mazó

Contando la aviación desde marzo del año 2000. Fundador y Managing Editor de Aviacionline. Base: ROS Origen: RES

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