FLEET UPDATE: Aerolineas Argentinas E-190, LV-CIF, repainted in Aerolineas livery

Former Austral E-190, LV-CIF (c/n 421) was recently repainted with Aerolineas Argentinas colors and titles like those on sistership LV-CMA, pictured above at Buenos Aires Aeroparque (AEP) on 26Jul24. (Phil Perry Photo)

Aerolineas Argentinas E-190, LV-CIF (c/n 421) had its Austral colors and titles removed and replaced with the complete Aerolineas scheme at the Fabrica Argentina de Aviones (FAdeA) airfield in Cordoba (not the Cordoba (COR) airport where airline flights operate) on 09Nov24.  It is the third former Austral E-190 to be repainted in Aerolineas colors, joining LV-CMA (c/n 445) and LV-CDZ (c/n 377), which were repainted on 03Mar21 and 05Jun23, respectively.  The Aerolineas and Austral schemes are very similar, with the main differences being the titles and the red stripe on the Austral fuselage.

Austral was a privately-owned airline formed decades ago that changed hands on more than one occasion until it was finally fully-merged with state-owned Aerolineas Argentinas on 30Nov20.  

Now, some four years after the merger was completed, only three of the 24 former Austral E-190's currently in the Aerolineas fleet have been repainted in the Aerolineas Argentinas color scheme.  Maybe due to nostalgia among former Austral employees, especially the pilots, who reportedly remember the carrier fondly.  

Sources:

https://aviacionline.com/2024/11/fadea-entrego-otro-embraer-e190-con-los-colores-de-aerolineas-argentinas/

FLEET UPDATE: Aerolineas Argentinas returned E-190 LV-GAQ to lessor, Embraer fleet presently at 24

Austral (later Aerolineas Argentinas) E-190, LV-GAQ (c/n 19000275), taxis out for departure at Buenos Aires Aeroparque (AEP) on 01Jun23. (Phil Perry Photo)

 

The first Embraer E-190 to ever leave the Aerolineas Argentinas fleet, LV-GBK (c/n 19000291), departed Argentina on 18Sep24 to the Middle Georgia Regional Airport in Macon (MCN) in the United States for return to the lessor Azorra.  This was followed by a second E-190, LV-GAQ (c/n 19000275) departing Buenos Aires Ezeiza (EZE) on 26Sep24, also to Macon (MCN) and returning to Azorra, leaving Aerolineas with a fleet of 24 E-190's, which is slated to be further reduced in the coming years as the carrier is expected to take delivery of 12 E195-E2's and more 737 MAX 8's.  

      

LV-GAQ, like sistership LV-GBK, was originally delivered to Republic Airways in 2009 operating regional flights on behalf of mainline carriers American, Delta and United before joining the Aerolineas Argentinas fleet in 2016.    

FLEET STATUS:

Aerolineas Argentinas' current fleet of E-190's consists of the following 24 aircraft:

Registration - C/N - Delivery Date - Remarks

• LV-CDY - 365 - 20/9/2010 - Remarks: factory-delivered new to Austral
• LV-CDZ - 377 - 20/9/2010 - Remarks: factory-delivered new to Austral
• LV-CET - 383 - 4/10/2010 - Remarks: factory-delivered new to Austral
• LV-CEU - 389 - 12/11/2010 - Remarks: factory-delivered new to Austral
• LV-CEV - 390 - 12/11/2010 - Remarks: factory-delivered new to Austral
• LV-CHO - 395 - 11/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHQ - 397 - 14/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHR - 400 - 22/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHS - 402 - 22/12/2010 - Remarks: factory-delivered new to Austral
• LV-CID - 409 - 11/02/2011 - Remarks: factory-delivered new to Austral
• LV-CIE - 414 - 25/02/2011 - Remarks: factory-delivered new to Austral
• LV-CIF - 421 - 28/03/2011 - Remarks: factory-delivered new to Austral
• LV-CIG - 427 - 02/05/2011 - Remarks: factory-delivered new to Austral
• LV-CIH - 428 - 29/04/2011 - Remarks: factory-delivered new to Austral
• LV-CKZ - 439 - 18/06/2011 - Remarks: factory-delivered new to Austral
• LV-CMA - 445 - 26/08/2011 - Remarks: factory-delivered new to Austral
• LV-CMB - 448 - 26/08/2011 - Remarks: factory-delivered new to Austral
• LV-CPI - 457 - 16/9/2011 - Remarks: factory-delivered new to Austral
• LV-CPJ - 463 - 23/09/2011 - Remarks: factory-delivered new to Austral
• LV-CPK - 474 - 23/09/2011 - Remarks: factory-delivered new to Austral
• LV-FPS - 639 - 27/09/2013 - Remarks: factory-delivered new to Austral
• LV-FPT - 640 - 25/10/2013 - Remarks: factory-delivered new to Austral
• LV-GIK - 715 - 26/06/2016 - Remarks: factory-delivered new to Austral. On lease to Aerolineas Argentinas. 
• LV-GIQ - 716 - 29/07/2016 - Remarks: factory-delivered new to Austral. On lease to Aerolineas Argentinas.       

Sources:

https://www.airfleets.net/flottecie/Aerolineas%20Argentinas.htm

https://aviacionline.com/2024/10/de-argentina-a-vietnam-vietjet-air-usara-los-dos-embraer-ex-aerolineas-argentinas/

FLEET UPDATE: Aerolineas Argentinas returned E-190 LV-GBK to lessor, Embraer fleet presently at 25

Austral (later Aerolineas Argentinas) E-190, LV-GBK (c/n 19000291), taxis out for departure at Buenos Aires Aeroparque (AEP) on 19Dec18. (Phil Perry Photo)

After having accumulated 26 E-190's between 2010 and 2016, with 22 owned examples and four leased airframes, Aerolineas Argentinas for the first time had one of its E-jets leave its fleet when the lease on LV-GBK (c/n 19000291) recently expired.  

The aircraft departed Buenos Aires Ezeiza (EZE), with the Austral titles removed from its fuselage, on 18Sep24 bound for Middle Georgia Regional Airport (MCN) in Macon, Georgia, via Asuncion (ASU) and Manaos (MAO) for return to the lessor Azorra.  It was flown by a Brazilian crew due to the refusal of three Aerolineas pilots to operate the ferry flight, claiming that the aircraft's return, along with another E-190 LV-GAQ (c/n 19000275) slated to leave the fleet before year's end, indicated an intent on the part of management to start downsizing the company in preparation for the carrier's planned privatization by the Argentine government.   

Aerolineas' senior management claimed that the accusations were unfounded, noting that three 737 MAX 8's have been added to the airline's fleet so far in 2024 and proceeded to fire the three pilots who refused the flight due to damages that management claimed to be US$ 26,000 (apparently per day) possibly amounting up to US$ 800,000, resulting from penalties corresponding to the late return of the aircraft. 

LV-GBK was originally delivered to Republic Airways in 2009 operating regional flights on behalf of mainline carriers American, Delta and United before joining the Aerolineas Argentinas fleet on lease in 2016.    

FLEET STATUS:

Aerolineas Argentinas' current fleet of E-190's consists of the following 25 aircraft:

Registration - C/N - Delivery Date - Remarks

• LV-CDY - 365 - 20/9/2010 - Remarks: factory-delivered new to Austral
• LV-CDZ - 377 - 20/9/2010 - Remarks: factory-delivered new to Austral
• LV-CET - 383 - 4/10/2010 - Remarks: factory-delivered new to Austral
• LV-CEU - 389 - 12/11/2010 - Remarks: factory-delivered new to Austral
• LV-CEV - 390 - 12/11/2010 - Remarks: factory-delivered new to Austral
• LV-CHO - 395 - 11/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHQ - 397 - 14/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHR - 400 - 22/12/2010 - Remarks: factory-delivered new to Austral
• LV-CHS - 402 - 22/12/2010 - Remarks: factory-delivered new to Austral
• LV-CID - 409 - 11/02/2011 - Remarks: factory-delivered new to Austral
• LV-CIE - 414 - 25/02/2011 - Remarks: factory-delivered new to Austral
• LV-CIF - 421 - 28/03/2011 - Remarks: factory-delivered new to Austral
• LV-CIG - 427 - 02/05/2011 - Remarks: factory-delivered new to Austral
• LV-CIH - 428 - 29/04/2011 - Remarks: factory-delivered new to Austral
• LV-CKZ - 439 - 18/06/2011 - Remarks: factory-delivered new to Austral
• LV-CMA - 445 - 26/08/2011 - Remarks: factory-delivered new to Austral
• LV-CMB - 448 - 26/08/2011 - Remarks: factory-delivered new to Austral
• LV-CPI - 457 - 16/9/2011 - Remarks: factory-delivered new to Austral
• LV-CPJ - 463 - 23/09/2011 - Remarks: factory-delivered new to Austral
• LV-CPK - 474 - 23/09/2011 - Remarks: factory-delivered new to Austral
• LV-FPS - 639 - 27/09/2013 - Remarks: factory-delivered new to Austral
• LV-FPT - 640 - 25/10/2013 - Remarks: factory-delivered new to Austral
• LV-GAQ - 275 - 16/04/2016 - Remarks: Originally delivered to Republic Airways on 27/08/2009 as N164HQ.  On lease to Aerolineas Argentinas.
• LV-GIK - 715 - 26/06/2016 - Remarks: factory-delivered new to Austral. On lease to Aerolineas Argentinas. 
• LV-GIQ - 716 - 29/07/2016 - Remarks: factory-delivered new to Austral. On lease to Aerolineas Argentinas.       

Sources:

https://www.airfleets.net/flottecie/Aerolineas%20Argentinas.htm
https://aviacionline.com/2024/09/aerolineas-argentinas-retiro-por-primera-vez-un-embraer-e190-de-su-flota/

FLEET UPDATE: Aerolineas Argentinas replacement for E190 fleet still on hold after 737 MAX 8 and then E195-E2 were favored

Austral E190, LV-GIQ (c/n 716), taxis on a beautiful sunny day at Buenos Aires Aeroparque (AEP) on 29Mar18.  (Phil Perry Photo)

Aerolineas Argentinas started considering a replacement for the-then Austral and current Aerolineas E190 fleet back in 2017.  Although its oldest E190's were a relatively young seven years old having been delivered in 2010, there were several reasons why replacing the 26-strong E190 fleet appeared attractive:

Arguments in Favor of Replacing E190 

* Economies of Scale Advantage of Larger and/or more Modern Aircraft over the E190

The next generation of the Embraer E190 series, the E190-E2, has a similar seating capacity to the E190 but its geared turbofan engines and many other improvements give it a 12.9% lower operating cost per seat mile than the E190.  

The 162-seat 737-800's economies of scale advantage over the E190 give it a 27.3% lower seat-mile cost over the Brazilian-made aircraft.

Similarly, the 166-seat 737 MAX 8 has both economies of scale and the latest technology advantages over the E190 yielding seat-mile costs that are a whopping 40.2% less than the smaller and older plane. 

* E190 Limited Cargo Capacity

The E190's cargo hold capacity is reportedly relatively small, so much so that there have reportedly been times when it has not been able to accommodate passenger luggage, with many pieces being forwarded to their destination on later flights. 

* Fleet Commonality - Cost Savings

The Aerolineas Argentinas short-to-medium range fleet consists of the 96-seat E190 and 162-seat 737-800.  

Replacing the E190 with more 737-800's or 737 MAX 8's would save Aerolineas on training, crew type rating, spares, and maintenance costs.   

 

* New Argentine Low-Cost Carriers operating 170+ seat Aircraft

New LCC's Flybondi and Jetsmart Argentina operate larger 737-800's and A320's respectively, with lower seat-mile costs than the E190, helping them to offer lower airfares than Aerolineas can using the smaller plane.  Switching to 737-800's or 737 MAX 8's would allow Aerolineas to compete with lower airfares, at least on routes with enough traffic to support larger aircraft. 

Twenty Proposals for E190 Replacement

In mid-2018, Aerolineas Argentinas requested proposals for the replacement of the E190 fleet from aircraft manufacturers, leasing companies and financial entities specializing in capital equipment financing.  

Twenty parties presented proposals in October of that year, including Airbus, Boeing, Embraer, AerCap, Aircastle, Air Lease Corporation, Aviation Capital Group, Avolon, Azorra, Boc Aviation, CFM, Falko, GE Capital Aviation Services, Jet Trading & Leasing, Macquarie, Nordic Aviation Capital, Pratt & Whitney, Regional One, SMBC Aviation Capital and Willis Lease.

Criteria for Lease / Purchase Decision 

The proposals were to be analyzed applying the following criteria:

* Cost of Lease or Purchase

* Valuation of Aerolineas E190 Fleet

One of the conditions of the Request for Proposals was that the winning bidder would purchase Aerolineas' used E190 fleet so the valuation placed on these aircraft by the bidder would be an important factor.    

* Leaseback Costs of E190's

The 26 E190's of Aerolineas would not be replaced all at once overnight but would likely be leased back from the winning bidder and retired gradually during the transition process to the new fleet.  The cost of the leaseback would be a factor for consideration of the various bids.

* Cost of Transition from E190's to Replacement Fleet

Costs of training flight crews and maintenance staff, spares supply, possible hangar modifications, etc. would be considered.  

* Negotiations with Aerolineas' Labor Unions   

Also to be taken into account in the bid / aircraft type selection process would be the proposed labor agreements requested by Aerolineas' unions for each  candidate replacement type.    

Replacement Aircraft - Most Important Characteristics

* Factory-new 

* State-of-the Art Technology

* Lower Fuel Consumption than E190

* Lower Environmental Impact than E190 

* Competitive Operating Costs   

737 MAX 8 Favored but MAX Grounding Put Plans on Hold 

  

Aerolineas aimed to analyze the different proposals and negotiate an agreement with one of the suppliers within 90 days.  Preliminary reports had the carrier favoring the 737 MAX 8 for its versatility and economies of scale on both short and long-range routes plus the favorable economics of having one family of aircraft, 737-800 / 737 MAX, for all of its short to medium range needs.  A tentative decision was apparently made at the end of 2018 to acquire the aircraft with Aerolineas' board set to meet in May 2019 to approve the acquisition.  

However, the grounding of the 737 MAX series in March 2019 after two deadly crashes in Indonesia and Ethiopia put Aerolineas' plans to acquire the aircraft on hold.  Although the first planes would not be delivered for a couple of years, ordering a type that was grounded for an undetermined amount of time seemed imprudent so the decision was made to ask the contract bidders to update their proposals once the MAX's grounding was lifted.     

Also, the devaluation of the Argentine peso from approx. 20 pesos to 40 pesos per USD between April 2018 and August 2018 effectively made any purchase or leasing arrangement in hard currency much more expensive plus the devaluation  hurt the Argentine economy.  Both of these factors could not have helped Aerolineas to move forward with any plans to replace the E190 fleet. 

E195-E2 Favored by New Presidential Administration 

Argentina had presidential elections in late 2019 with Alberto Fernandez defeating incumbent Mauricio Macri.  The continued weakness of the Argentine economy and the COVID-19 pandemic have led to the selection of an E190 replacement remaining on hold, even beyond the recertification of the 737 MAX series.

However, Aerolineas' new management under the new presidential administration expressed a preference in early 2020 for the Embraer E195-E2, typically with 138 seats compared to the 106 seats of the E190-E2, the successor aircraft to the E190.  The E195-E2 offers greater efficiency, enabling it to offer higher seating capacity without much higher operating costs.  The E195-E2 is better-suited than the 737 MAX 8 to Aerolineas' domestic route network, which includes many smaller cities that are loss-makers with larger aircraft. 

As of this writing in July 2021, there has been no further dialogue regarding replacement of Aerolineas Argentinas' Embraer E190 fleet.             

Sources:

https://argentina-airline-news.blogspot.com/2017/08/aerolineas-argentinas-to-reduce-or.html
https://argentina-airline-news.blogspot.com/2018/02/fleet-update-aerolineas-argentinas.html

https://www.sirchandler.com.ar/2018/10/aerolineas-argentinas-analiza-las-ofertas-para-cambiar-a-los-embraer-de-austral/

https://www.aviacionline.com/2019/09/los-e190-seguiran-en-austral-por-un-tiempo-max-digo-mas/

Aviacion News - 16Jan20 

FLEET UPDATE: First former Austral E-190 painted in Aerolineas Argentinas color scheme

The predecessor carriers of Austral Lineas Aereas were formed in 1957 and enjoyed various moments of alternating private and state ownership over the years until the carrier was finally fully absorbed by Aerolineas Argentinas with its identity disappearing altogether.

The first of  the former 26-strong fleet of Austral E-190's, LV-CMA (c/n 445), was recently painted in Aerolineas Argentinas colors.  Austral belonged to Aerolineas Argentinas during its last 10+ years of existence so its E-190 fleet was painted in a scheme almost identical to that of the parent airline with the only differences being a red stripe on the fuselage and Austral titles.  With the stripe removed and Aerolineas Argentinas titles applied, the aircraft is ready to re-enter service sporting its new identity. 

Photos of LV-CMA were published by the excellent Argentine aviation blog  www.aviacionline.com at the following link:  

Aerolineas Argentinas E-190 painted in company colors

ROUTE UPDATES: Argentina "Regular" Flights Restart - #1 of 4 - Aerolineas Argentinas - Buenos Aires Ezeiza (EZE) Departures - Week of 07-13Dec

Regularly scheduled airline services came to an abrupt halt in Argentina on 20Mar20 with only "special" flights operated, mostly for the repatriation of both Argentines stranded overseas and foreigners marooned in Argentina, until 22Oct20 when "regular" flights were resumed. 

Many special cargo flights were also operated (and continue to be flown), such as at least sixteen Aerolineas Argentinas flights to Shanghai, China that brought back to Argentina massive numbers of masks, gowns and other equipment to be used in the fight against COVID-19.     

The resumption of "regular" flights in October was exclusively out of Buenos Aires Ezeiza (EZE) because the capital's two other airports were and still are closed.  

Buenos Aires Aeroparque (AEP) is not operational due to the airfield's sole runway being resurfaced and extended (work scheduled to be finished in March/April) and the reopening of Buenos Aires El Palomar (EPA) was deemed inefficient costwise, considering that Ezeiza is operating well below capacity, so EPA's two carriers, Flybondi and Jetsmart, have been directed to fly out of EZE, at least for now. 

At first, only about a dozen "regular" flights per day flew out of EZE but this increased significantly to an average of 47 daily departures during the week of 07-13Dec with a total of 332 flights being operated by all airlines from EZE during that period.  

Aerolineas Argentinas 737-700, LV-BZA (c/n 32674/1952), taxis at Buenos Aires Aeroparque (AEP) on 19Dec18 in special "Skyteam" colors.  This aircraft is one of four 737-700's currently being flown by Aerolineas with the carrier having four more parked out of service since March 2020 due to the COVID-19 pandemic.  (Phil Perry Photo)    

Aerolineas Argentinas

Aerolineas operated 192 of the flights out of EZE that week with 157 being domestic and 35 being international. 

Domestic Destinations - By Most Number of Flights - Week of 07-13Dec

With Buenos Aires Aeroparque (AEP) out of use for a few months, Argentine domestic flights are being operated out of EZE.  Being the national flag carrier, Aerolineas Argentinas is naturally flying most of these:

* Cordoba (COR) - Argentina's second-largest city received the most flights from EZE with 19 departures from the airport during the week in question with most of the flights being operated by 737-800's complemented by a few E-190's and even one 737-700 (AR is operating four out eight 737-700's in its fleet, LV-BZA, LV-CAP, LV-BYY and LV-GOO with the others parked since March 2020).

* Bariloche (BRC) - 18 flights all operated with 737-800

* Mendoza (MDZ) - 15 flights with 12 operated by 737-800 and 3 with E-190

* Tucuman (TUC) - 11 flights flown by a combination of 737-700 and E-190

* Neuquen (NQN) - 10 flights with nearly all of them flown by 737-800

* Salta (SLA) - 8 flights, also with nearly all of them flown by 737-800  

* Ushuaia (USH) - 8 flights, also with nearly all of them flown by 737-800  

* Trelew (REL) - 6 flights, all with E-190

* Jujuy (JUJ) - 5 flights, all with E-190                                                        

* Posadas (PSS) - 5 flights, all with E-190                                                    

* Resistencia (RES) - 5 flights, all with E-190         

* Corrientes (CNQ) - 4 flights, all with E-190                                                

* Comodoro Rivadavia (CRD) - 4 flights, all with 737-800                           

* Mar del Plata (MDQ) - 4 flights, all with E-190

* Puerto Iguazu (IGR) - 3 flights, all with 737-800      

* Rio Gallegos (RGL) - 3 flights, all with 737-800       

* Bahia Blanca (BHI) - 3 flights, all with E-190

* Rosario (ROS) - 3 flights, all with E-190

* Santiago del Estero (SDE) - 3 flights, all with E-190

* San Juan (UAQ) - 3 flights, all with E-190

* El Calafate (FTE) - 2 flights operated by a 737-800 and 737-700 

* La Rioja (IRJ) / Catamarca (CTC) - 2 flights, both with E-190   

* San Luis (LUQ) - 2 flights, both with E-190

* Santa Fe (SFN) - 2 flights, both with E-190    

* San Rafael (AFA) - 1 flight with E-190

* Catamarca (CTC) - 1 flight with E-190

* Esquel (EQS) - 1 flight with E-190

* Parana (PRA) - 1 flight with E-190

* Rio Grande (RGA) - 1 flight with 737-800

* Santa Rosa (RSA) - 1 flight with E-190

* Viedma (VDM) - 1 flight with E-190

Aerolineas Argentinas

International Destinations - Week of 07-13Dec

Latin America

* Sao Paulo Guarulhos (GRU) - 7 flights, all with 737-800

* Rio de Janeiro Galeao (GIG) - 6 flights, nearly all with 737-800

* Asuncion (ASU) - 5 flights, all with 737-800

* Santiago (SCL) - 5 flights, all with 737-800

* Santa Cruz de la Sierra (VVI) - 2 flights, both with 737-800

* Bogota (BOG) - 1 flight with A330-200

* Salvador de Bahia (SSA) - 1 flight, probably by 737-800 (appears to have been a "special" flight)

Intercontnental

* Miami (MIA) - 5 flights, all with A300-200

* Paris - Charles de Gaulle (CDG) -  1 flight, probably by A330-200 (appears to have been "a special" flight)

* Madrid (MAD) - 1 flight with A330-200  

Presumably more flights will be added during the course of 2021 until a full flight schedule has been resumed, although that might take a couple of years depending on the economic and pandemic situations. 

Sources:

www.aa2000.com.ar

www.flightstats.com

https://www.airfleets.net/flottecie/Aerolineas%20Argentinas-active-b737ng.htm

Two Austral E190's each lose one nose gear wheel in two year time span

Two Austral E190's each lost one of their nose gear wheels in separate incidents in a two-year time span.  Details below.

Austral E190, LV-CID (c/n 409), lands at Buenos Aires Aeroparque (AEP) on 17Nov16.  (Phil Perry Photo)

LV-CID (c/n 409) operating from Mar del Plata (MDQ) to Buenos Aires Aeroparque (AEP) on 29Jan18 lost its left nose gear wheel as it lined up for takeoff from MDQ with the crew taxiing back to the gate after the incident.  

The Argentine aviation investigating agency JIAAC released its final report on 16Jul19 with the following conclusions:

* The investigation found evidence of fatigue failure at the rim of the wheel of the nose landing gear.

* it was determined that the origin of the stress concentrating point, that caused the fissure, was corrosion by pitting

* it could not be reliably detected why the fissure expanded undetected by non-destructive tests carried out in regular scheduled intervals until the fracture occurred

* The investigation did not find any concrete evidence that could link the fatigue failure with inadequate maintenance or metallurgical damage

* The investigation did not find any similar failures in the history of the fleet or type of aircraft 

At least one reader of the article published in The Aviation Herald questioned why non-destructive tests that are a part of regular maintenance did not detect the cracks prior to the separation:

"The wheel has failed in precisely the location which must be routinely checked during tyre changes and wheel overhaul. Non-destructive techniques (eddy current, dye penetrant) have been routinely used for 50 + years to detect cracks in wheel flange areas which is why these occurrences are indeed rare. Failures like these propagate from corrosion pits and other mechanical damage. I would not be surprised to find that the subject wheel had been cracked for a considerable time. No excuses acceptable really - this airline is a major player."

Photo of the nose gear failure:

Photo: Austral E190 LV-CID nose gear missing left wheel

  

Austral E190, LV-CHQ (c/n 397), at Buenos Aires Aeroparque (AEP) on 11Jul17.  (Phil Perry Photo)

* LV-CHQ (c/n 397) operating from Buenos Aires Ezeiza (EZE) to Rosario (ROS) lost its left nose gear wheel after landing in ROS at 2:10am on 17Feb20.  The crew was not aware of the missing wheel until the aircraft had finished taxiing to the gate.  Cause of the separation was not reported.  

Photos of the nose gear failure: 

Photos: Austral E190 LV-CHQ nose gear missing left wheel

Sources:

http://avherald.com/h?article=4b44d50f

https://www.lanacion.com.ar/economia/incidente-un-avion-austral-aterrizo-sin-rueda-nid2334527/

https://aviation-safety.net/wikibase/233016

ROUTE UPDATES: Avianca & Avianca Argentina

* Cordoba (COR) - Lima (LIM) - eff 17Nov17 - APPROVAL REJECTED

Avianca had planned to start this service using E190's but approval of the flight was rejected, which came as a surprise given the current Argentine national government's apparent policy of approving almost all new proposed airline service.  LATAM Peru already flies this route so maybe the government considered that flights by both Avianca and LATAM Peru to their respective hubs in Lima (LIM) would be too much capacity on one route for a medium-sized city like Cordoba.  

* Mendoza (MDZ) - Lima (LIM) - eff 01Apr18 - 1x/Daily

Flights operated with A320's.  This is Avianca's third route from Argentina with the other two being Buenos Aires Ezeiza (EZE) to Bogota (BOG), operated 1x/daily with 787's, and Ezeiza to Lima (LIM), flown 2x/daily using A321's and A330's.  

* Cordoba (COR) - Rosario (ROS) - APPROVAL REJECTED

Avianca Argentina included this route linking Argentina's second and third-largest cities in its requests made at the route hearings in September 2017 but it was rejected.  Apparent reason given was insufficient traffic on past scheduled flights on the route, which made the request subject to a law prohibiting services on lightly-traveled routes.    

It should be noted that Avianca and Avianca Argentina are two separate entities owned by the same parent company, Synergy Group. 

Sources:

https://aviacionline.com/2018/01/avianca-volara-entre-mendoza-y-lima/
http://aeropuertocordoba.blogspot.com.ar/2017/09/novedades-aerocomerciales-en-cordoba_28.html
http://www.sirchandler.com.ar/2018/05/popurri-de-noticias-aeronauticas/

FLEET UPDATE: Aerolineas Argentinas / Austral likely to order best financial deal between 737 MAX 8 and A320neo

Austral E190, LV-CPJ (c/n 463), taxis in at Buenos Aires Aeroparque (AEP) on 29Mar18.  Austral's E190's are expected to start leaving the fleet later this year. (Phil Perry Photo) 

Aviacion News reports that the announced four-way competition between aircraft manufacturers Airbus, Boeing, Bombardier and Embraer for Aerolineas Argentinas' order of replacement aircraft for its Austral division's 26-strong E190 fleet is really a two-way affair between Airbus' A320neo family of aircraft and Boeing's 737 MAX series, given that the airline group has repeatedly stated in recent times that the type chosen will have approx. 186 seats.

Both aircraft are comparable technically and from a performance standpoint, with Boeing's 737 MAX series considered to have the advantage given Aerolineas Argentinas' existing fleet of 31 737-800's and four 737 MAX 8's and the commonality that additional MAX series aircraft would bring.  According to Aviacion News the eventual winner of the contract (expected to be decided in June) might be the manufacturer that offers the best financing package, either through purchase of the aircraft, leasing through an aircraft lessor or a combination of both.  In any case, the winning manufacturer is expected to take Austral's existing fleet of 24-owned and two-leased E190's as part of the deal.  The first of the winning order of aircraft is expected to be delivered to Austral by the end of this year.  

Source:

http://www.siscoma.com.ar/online/aviacion/2018/avn180510/avn-180510.html

FLEET UPDATE: Aerolineas Argentinas started process of replacing entire Austral E190 fleet

Austral E190, LV-GIQ (c/n 716), taxis at Buenos Aires Aeroparque (AEP) on 08Feb18.  Austral took delivery of LV-GIQ less than two years ago on 29Jul16, the 26th and last of example of the E190 to join the airline.  It was fresh from the factory on lease from Nordic Aviation Capital.  This aircraft and its 25 E190 stablemates will apparently start exiting the Austral fleet in the next year or so.    

Aerolineas Argentinas has formally started the process of replacing the entire E190 fleet of subsidiary Austral Lineas Aereas.  

Airbus, Boeing, Bombardier and Embraer invited to bid

The airline has solicited proposals from the world's four most important commercial aircraft manufacturers, Airbus, Boeing, Bombardier and Embraer, for replacement of Austral's entire fleet of 26 E190's on a one-for-one basis.  Aerolineas' president Mario Dell' Acqua at first indicated that the carrier would seek 170-180 seat replacements, suggesting a large increase in capacity considering that they would be replacing the 96-seat E190's.  This would have also ruled out Bombardier and Embraer from the competition due to their lack of such large aircraft with no plans to build any in the foreseeable future either.  

However, Mr. Dell' Acqua has also mentioned more recently the possibility of replacements having 130 seats, suggesting that there might be a mixed fleet of smaller and larger aircraft, presumably to serve smaller markets that are not large enough to support service by 180-seat aircraft, such as the Argentine cities of Rio Cuarto, Santa Rosa and Viedma.  He also recognized that many of these smaller markets have airports that the 737-800 cannot operate into.  
This might open the door a bit for Bombardier and Embraer but this would still favor Airbus and Boeing because they could offer both 130 and 180 seaters from their A320 and 737 families, respectively.

Austral's 24 owned E190's as Partial Payment for Replacement Aircraft

One of the conditions of the Request for Proposals (RFP) that Aerolineas has made is that the winning bid for a replacement aircraft must include acceptance of Austral's 24-owned E190's (the other two are leased) as partial payment for the new airframes.  Aerolineas tried to sell the 24-owned planes as one lot but found no takers and discovered in the process that the market for used E190's is very weak with the Austral examples being seven years old on average and having an appraised value of US$ 12 million each, way below the purchase price of US$ 34.9 million per example (which was reportedly inflated, more on that below).  Further deteriorating the value of Austral's E190's is their impending need for major maintenance almost simultaneously with one another, having been delivered in a short time frame starting in 2010. 

It's all about the Costs per Seat

The main reason behind the decision to replace the E190 fleet is the low operating costs in terms of Cost per Available Seat Mile (CASM) of larger aircraft such as the 737-800, of which Aerolineas already has has 31, and especially of the new 737 MAX 8, which Aerolineas has three of so far with more on order.  

The cost difference can be seen when comparing fuel consumption of the E190 to its potential replacements.      

Wikipedia reports the following fuel consumption data on the listed aircraft on typical 550-600 mile sectors without specific mention of wind / weather conditions or operating weights, but presumably with loads taking advantage of each aircraft's capabilities:

The E190 typically consumes 2.98 kg/km (10.6 lb/mile), which with 96 seats = 3.81 liters/100km/seat

The planned E190 replacement, the E190-E2 with geared turbofan engines and many other improvements, burns 2.83 kg/km (10.04 lb/mile), which with its 106 seats = 3.32 liters/100km/seat, a 12.9% improvement compared to the E190.  

Similarly, the 737-800 consumes 3.59 kg/km (12.7 lb/mile), which divided by its 162 seats = 2.77 liters/100km/seat, 27.3% less than the E190.

Finally, the new 737 MAX 8 uses 3.04 kg/km (10.8 lb/mile), which with 166 seats = 2.28 liters/100km/seat, a whopping 40.2% less than the E190.

Most other costs, such as ground handing and flight crew expenses are about the same for all of the above aircraft.      

Flight Frequency not a Priority in Argentina

Of course, if the only consideration for airlines was the operating cost per seat, then they would all fly the A380 !  The aircraft that they fly to each city need to be the appropriate size for the number of passengers that the local market can generate plus even large markets do not want to be served exclusively by large aircraft even though they can support them.  Larger aircraft = fewer flights while smaller aircraft allow for more frequent flights, which is important in city pairs with a lot of business traffic. 

For example, New York to Boston, Chicago, London, Los Angeles, San Francisco and Washington are all markets where business travelers demand frequent flights so that they can fly when it is convenient for them.  Other examples include Los Angeles - San Francisco, Dallas - Houston, Toronto - Montreal, London - Paris, Tokyo - Osaka, Beijing - Shanghai, and Sydney - Melbourne.

New York - Boston is served primarily by shuttle flights operated by Delta 717's and American E-190's, both with approx. 100 seats.

However, Argentina is different in that the only frequency-sensitive market is between the nation's two largest cities, Buenos Aires - Cordoba, with approx. 10-12 daily flights between Buenos Aires Aeroparque (AEP) and Cordoba (COR) supplemented by a few flights from Buenos Aires Ezeiza (EZE) and now Buenos Aires El Palomar (EPA) to Cordoba too.  With frequency being relatively unimportant, larger aircraft with lower CASM's become more attractive for Aerolineas Argentinas / Austral, especially with the incipient competition from Flybondi and Norwegian Air Argentina, both of which are using or plan to use the 737-800 and/or the 737 MAX 8 with low CASM's, allowing them to offer low fares true to their mission as Argentina's first LCC's.       

New Aircraft Timings     

At one time it was suggested that Aerolineas might take Austral's E190's out of service at an accelerated rate but it has been suggested more recently that the pace would probably be 4-5 aircraft per year divided in two stages of 12 aircraft followed by the remaining 14 airframes.  

The speed of delivery of the new planes will likely be determined at least partly by the chosen manufacturer's ability to deliver new aircraft given its commitments to other airlines and the rate at which Aerolineas' can train new pilots to fly them. 

E190 Disposal = Large Cash & Accounting Losses     

Aerolineas hesitated over the last few months on its decision to retire Austral's E190 fleet because of the likely heavy financial losses such a move would incur. 

The remaining debt on the aircraft will likely exceed the value that the airline group will be credited towards the purchase / lease of new aircraft plus the E190's have apparently been depreciated much more slowly in Aerolineas' accounting books than the rate at which the aircraft have lost market value,
which will result in an accounting loss as well as the actual cash loss. 

Stating the situation in actual numbers, Aerolineas purchased Austral's initial batch of 22 E190's for US$ 34.9 million each (approx. US$ 4.9 million more than E190's were typically being sold for at that time but that would be the subject of another posting !).

22 aircraft x US$ 34.9 million = US$ 768 million paid for with a 15% deposit with the remaining 85%, US$ 653 million, financed by the Bndes Brazilian government development bank at an interest rate of 7.45%.  Until recently, Aerolineas still owed US$ 360 million of that loan.  With the market value of Austral's E190's currently estimated at US$ 12 million each x 22 aircraft = US$ 264 million, the carrier would have been US$ 96 million short of paying off the debt with the proceeds from the sale of the planes.               

Aerolineas tried to renegotiate the terms of the debt with the Bndes to no avail, choosing instead to take a commercial loan at 4% to retire the debt, thereby saving considerable interest expense in the process.  While the loss is reduced it is still considerable.

Aerolineas stands to also take a large accounting loss from the sale of Austral's E190's because they have been depreciated at a rate slower then their decline in market value.  They are said to each have a value of US$ 24 million on the company's books, which while being worth US$ 12 million as mentioned above would mean a staggering 22 x US$ 12 million = US$ 264 million extraordinary accounting loss, just as the airline has successfully reduced losses from approx. US$ 1 thousand million (billion) earlier in this decade to an expected US$ 90 million in 2018.  

The political cost to the administration of Argentine president Mauricio Macri of such a large financial step backwards by the state-owned carrier could be considerable.          
  
Sources:

http://www.airfleets.net/ficheapp/plane-e190-716.htm  http://www.siscoma.com.ar/online/aviacion/2017/avn171005/avn-171005.html
http://www.siscoma.com.ar/online/aviacion/2017/avn171207/avn-171207.html
http://www.lanacion.com.ar/2094329-la-venta-de-los-embraer-podria-ocasionarle-una-gran-perdida-a-aerolineas
http://www.lanacion.com.ar/2103867-aerolineas-inicio-el-proceso-para-reemplazar-los-aviones-embraer
https://en.wikipedia.org/wiki/Fuel_economy_in_aircraft
http://www.siscoma.com.ar/online/aviacion/2018/avn180201/avn-180201.html
http://www.siscoma.com.ar/online/aviacion/2018/avn180215/avn-180215.html

FLEET UPDATE: More details on possible replacement of Austral E190 fleet

Austral E190, LV-CMB (c/n 448), turns off Buenos Aires Aeroparque's runway 31 after landing at the airport on 17Mar16. (Phil Perry Photo)  

Following up on two posts in late August regarding Aerolineas Argentinas / Austral's plans to possibly replace Austral's 26-strong Embraer 190 fleet, it is now being reported that the airline is looking to sell 20 of the 24 company-owned E190's while keeping the remaining four owned aircraft plus the two leased planes for "thinner" less-traveled routes to smaller cities.  The airline would acquire 20 new aircraft to replace the 20 departing E190's on a like-for-like basis with no net fleet reduction for its shorter-range routes.  

However, keeping only six E190's might be an expensive proposition that would more than offset the operational savings from flying an aircraft that is correctly-sized for the routes that it would fly.  It might be better to dispose of the entire E190 fleet and acquire more of the larger-than-necessary 737-800's, 737 MAX 8's (or whichever aircraft is chosen to replace the 20 E190's) to also serve the "thinner" routes, thereby gaining the economic efficiencies of operating a single type on short-range routes.                  

According to the May 2016 issue of Airways magazine, Oman Air came to this same conclusion when it kept four of its E190's for less-traveled routes but found that the overhead costs of training crews and maintaining a spares supply for such a small fleet were prohibitive even though the aircraft was ideal for many of its destinations.  The planes were put up for sale in June 2016.    
The aircraft types reportedly being considered to replace the E190's are the Embraer E195-E2 (new generation of this series that can carry up to 140 passengers in single-class configuration), the Airbus A320neo and the 737 MAX series, which Aerolineas Argentinas will already start taking delivery of later this year. 

Expanding upon the reasons already given in previous posts for replacing the E190's with larger jets, Aerolineas Argentinas / Austral's passenger numbers are higher than ever with load factors on the increase plus many Argentine airports have limited infrastructure (such as ramp space) limiting their ability to take on more aircraft but they can accommodate larger aircraft.   

The decision on the future of Austral's E190 fleet will likely be made in the coming months.  

Two previous posts on this subject in late August contain further background and details:

"Aerolineas Argentinas to reduce or dispose of Austral's E190 fleet ? - Part 1 - Rationales"

"Aerolineas Argentinas to reduce or dispose of Austral's E190 fleet ? - Part 2 - Bad Idea ?"

Sources:

http://www.sirchandler.com.ar/2017/08/va-pasar-los-embraer-190-austral/comment-page-1/#comments
Airways magazine, May 2016 issue

Aerolineas Argentinas to reduce or dispose of Austral's E190 fleet ? - Part 2 - Bad Idea ?

Blog Editor's Opinion

The answer to the question posed in the title of this posting largely depends on the mission of Aerolineas Argentinas / Austral.    

National Connectivity

As the state-owned national flag carrier of Argentina, Aerolineas Argentinas / Austral's main mission is presumably to contribute to the well-being of the national economy in the most effective way possible. 

As an airline, this would be accomplished by facilitating the movement of people and goods; whether they be business people traveling to close business deals, tourists traveling to enjoy a vacation or individuals visiting friends and relatives; all of these activities generate economic activity and create employment.

Profitability          

Aerolineas Argentinas / Austral could be run like a commercial enterprise to generate a return on investment for shareholders that provide its operating capital.  This would mean operating in a way that would not always be in the greater national interest as the connectivity described in the above paragraph would not be profitable in the case of smaller cities with light passenger traffic volumes that would not allow for sufficient economies of scale to achieve profitable operations at market-level airfares.  

Blog Editor's Perspective

It is the view of this blog's editor that a state-owned carrier should not operate with the primary objective of being a profit-making entity, although if it makes profits while providing a beneficial level of national connectivity, all the better !
  
With this in mind, the editor suspects that many routes currently operated with Australs' 96-seat E190's would be heavy loss makers if operated with 737-800's as has been proposed.  The choice would then be for the carrier to absorb these losses or abandon these routes with the consequential loss of connectivity and damage to local economies.   

Austral E190 Route Analysis

The editor analyzed Austral's route system based on a snapshot of the carrier's flights on Friday, 04Aug17 to identify sectors flown exclusively by its E190's with no service by Aerolineas 737-800's, which would suggest that these routes are too "thin" (lightly traveled) to justify the operation of the larger aircraft. 

The results can be divided into routes based on five criteria:

* Buenos Aires Aeroparque (AEP) to 7 domestic and 3 international points

The following smaller Argentine cities had service on 04Aug17 from Aeroparque exclusively with E190's, typically on a 2x/daily roundtrip basis:

AEP - Corrientes (CNQ)      
AEP - Formosa (FMA)            

AEP - Rio Cuarto (RCU) 

AEP - San Luis (LUQ) 

AEP - San Rafael (AFA)  

AEP - Santa Rosa (RSA)

AEP - Santiago del Estero (SDE) 

The following international routes from Aeroparque are apparently not able to support operations by larger aircraft profitably and are served only with E190's: 

AEP - Asuncion (ASU)

AEP - Curitiba (CWB)

AEP - Punta del Este (PDP) at least in the low season (non-summer) 

* Buenos Aires Ezeiza (EZE) to 4 domestic and 2 international points

These routes from Ezeiza are presumably for feed to/from international flights with special emphasis on longer-range South American regional routes and intercontinental routes to Italy, Spain, and the United States.

Domestic:

EZE - Cordoba (COR)

EZE - Iguazu

EZE - Mendoza (MDZ)

EZE - Rosario (ROS)

International:

EZE - Asuncion (ASU)

EZE - Montevideo

* Cordoba (COR) Hub-and-Spoke System

8 out of 10 flights departing from the Cordoba (COR) hub on 04Aug17 were operated with E190's, which is not surprising since connecting different points of the Argentine "Interior" without going through Buenos Aires is probably not a high-volume proposition.  

The following cities were served by Austral's E190's: 

COR - Bariloche (BRC)

COR - Neuquen (NQN)

COR - Comodoro Rivadavia (CRD)

COR - Mendoza (MDZ) - 2x/daily

COR - Jujuy (JUJ)

COR - Resistencia (RES)

COR - Rio Hondo (RHD) - temporarily replacing Tucuman (TUC) which is currently closed undergoing upgrades

Only two cities were served by Aerolineas 737-800's - Salta (SLA) and Ushuaia (USH) - with the latter not necessarily being a higher traffic destination as it is in the extreme south of Tierra del Fuego and probably beyond the range of the E190 from Cordoba (COR) with a full payload so the 737-800 is the only type that can be deployed on the route.  

* "Corredor" Routes connecting Argentine "Interior" Cities directly with each other

Aerolineas Argentinas / Austral's operates four "Corredor" routes with each one flown in a linear or circuitous path stopping in several cities and generally also flying the same route in reverse, without ever connecting via Buenos Aires, saving passengers a lot of time.  

The "Corredor Federal - Norte" and the "Corredor Federal - Sur" are both used to connect points of touristic interest directly to each other in northern and southern Argentina. 

The "Corredor Atlantico" runs from Buenos Aires Ezeiza (EZE) south along Argentina's Atlantic seaboard to Mar del Plata (MDQ) - Bahia Blanca (BHI) - Trelew (REL) - Comodoro Rivadavia (CRD) with the last stop being Rio Gallegos (RGL) or Ushuaia (USH).

The "Corredor Petrolero" connects points important to Argentina's oil industry; Rosario (ROS) - Cordoba (COR) - Mendoza (MDZ) - Neuquen (NQN) - Comodoro Rivadavia (CRD) - Rio Gallegos (RGL). 

The "Correder Atlantico" is operated by Austral E190's and the "Corredor Petrolero" appears to be also.  The other two might also be operated with this aircraft type.  With the amount of traffic flying between these smaller cities being somewhat limited, it would appear to make sense that they would be connected with a smaller aircraft like the E190 instead of the larger 737-800.   

* Lightly-Traveled Individual Route Segments

There are many route segments that do not fall into the above categories that are operated by Austral E190's, such as:

Rosario (ROS) - Mendoza (MDZ) - 4x/weekly connecting Argentina's third and fourth largest cities, respectively.    

Other point-to-point flights that allow passengers to avoid connecting through Buenos Aires that appear to have too little traffic to support 737-800 service include:

Rosario (ROS) - Salta (SLA)
Rosario (ROS) - Bariloche (BRC)
Bariloche (BRC) - Bahia Blanca (BHI)
Bariloche (BRC) - Viedma (VDM)  

* Airports not equipped to handle 737-800 Operations

In addition to light traffic levels, some airports currently served with Austral
E190's are not equipped to handle 737-800 class aircraft in terms of runway length, maximum allowable aircraft weight, and other flight operations criteria.

For example, the blog Aeropuerto Formosa (unofficial) notes that Formosa's Aeropuerto El Pucu's 1800m (5900 ft) runway is not long enough for the 737-800 and it cannot support the weight of such an aircraft either. 

* Conclusion

If Aerolineas Argentinas disposes of Austral's E190's and replaces them with larger aircraft, many routes connecting smaller cities with flights to Buenos Aires Aeroparque (AEP) and through the airline group's hub in Cordoba (COR) will likely become economically unviable.

Sources:

www.aa2000.com.ar
www.flightstats.com
http://www.aerolineas.com.ar/es-ar/prensa/comunicadoprensainterno/4182_aerolineas-argentinas-inaugura-su-cuarto-corredor-federal
http://www.aerolineas.com.ar/landingsespeciales/landings/4_mas-destinos-mas-frecuencias-corredores-federales
http://aeropuertoformosa.blogspot.com.ar/2017/08/adios-los-embraer-190.html