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Press Release

14/11/2014 - AFI KLM E&M To Extend Component Support For Boeing Fleet Of LATAM Airlines Group

One of the largest component support contracts signed by AFI KLM E&M.

Paris, Amstelveen, 14 November 2014 - LATAM Airlines Group, the largest airline group in Latin America and in the world in terms of network connections, has decided to entrust the component support for all its Boeing 767, 777 and 787 aircraft to AFI KLM E&M, a long-standing aircraft maintenance partner of the carrier. The long-term, flight-hour contract which is signed by the two groups covers the design and provision of repair and overhaul services and dedicated access to a pool of AFI KLM E&M spares. The 777 aircraft will be supported in partnership with Boeing through the 777 CSP program. The contract covers all LATAM Airlines Group Boeing aircraft, for a total of 90 aircraft during the contracted time.

Long-standing cooperation
AFI KLM E&M and LATAM Airlines Group have already been working together for a number of years in the aircraft maintenance sphere, especially on Boeing 767 and 777 engines and components. The South American airline group has always been satisfied with AFI KLM E&M's support services performance, quality and reliability. That satisfaction underpins the trust-based relationship between the two groups and partly explains the group's decision to continue and broaden the cooperation.

Franck Terner, Executive Vice President AIR FRANCE KLM Engineering & Maintenance, said: "The signing of this contract is a source of genuine satisfaction for AFI KLM E&M and represents a major sign of trust on the part of LATAM Airlines Group. On the strength of our dedication, the extent of our logistics network, and the scale of our engineering resources, we will strive to continue this virtuous and fruitful relationship by providing ever-more effective support services to our South American partner."

The power of AFI KLM E&M's engineering and logistics network
The combination of AFI KLM E&M's engineering units and logistics resources constitutes a further driver for the effectiveness and competitive differentiation of the MRO's offering: AFI KLM E&M has developed specific fields of component expertise for each Boeing product line, handled in dedicated infrastructure and workshops by qualified, specialized personnel. This was the case for the Boeing 767s and 777s, and since last year has also been the case for the Boeing 787, for which in 2012 AFI KLM E&M designed and implemented a component support offering and capability that has already enjoyed several commercial successes with worldwide 787 operators.

As a result, AFI KLM E&M is able to provide component support for three different aircraft types using its resources at its repair facilities in Miami (services provided by AMG, AFI KLM E&M's American subsidiary), Paris, and Amsterdam.

About LATAM Airlines Group S.A.
LATAM Airlines Group S.A. is the new name given to LAN Airlines S.A. as a result of its association with TAM S.A. LATAM Airlines Group S.A. now includes LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador, and LAN Cargo and its affiliates, as well as TAM S.A. and its subsidiaries TAM Linhas Aereas S.A., including its business units TAM Transportes Aereos del Mercosur S.A., (TAM Airlines (Paraguay) and Multiplus S.A. This association creates one of the largest airline groups in the world in terms of network connections, providing passenger transport services to about 135 destinations in 24 countries and cargo services to about 145 destinations in 27 countries, with a fleet of 321 aircraft. In total, LATAM Airlines Group S.A. has approximately 53,000 employees and its shares are traded in Santiago, as well as on the New York Stock Exchange, in the form of ADRs, and Sao Paulo Stock Exchange, in the form of BDRs.

Each airline will continue to operate under their current brands and identities. For any inquiry of LAN or TAM, please visit www.lan.com or www.tam.com.br, respectively. Further information at www.latamairlinesgroup.net

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