SAO PAULO, Aug 13 (Reuters) - LATAM Airlines

could potentially buy as many as 30 aircraft from Brazilian

planemaker Embraer ( ERJ ) as the carrier looks to expand

operations in Latin America's largest economy, Brazil's ports

and airports minister said on Tuesday.

WHY IT'S IMPORTANT

The local unit of Chile-based LATAM, Brazil's No.1 airline

by market share, wants to expand its fleet but faces extended

narrowbody delivery times from manufacturers.

Brazil's government has long urged local carriers to buy

Embraer ( ERJ ) aircraft to boost regional aviation and strengthen the

manufacturer, and has signaled that could be a requirement for

it to support them financially.

ADDITIONAL CONTEXT

LATAM Brazil's head Jerome Cadier last week said the company

was weighing the possibility of adding smaller aircraft to its

fleet, such as Embraer's ( ERJ ) E2 or Airbus' A220, which

compete in the regional segment for up-to-150-seat aircraft.

Cadier did not specify how many planes the carrier could

add. LATAM currently flies Airbus narrowbodies and Boeing ( BA )

widebodies.

KEY QUOTES

Brazil's Ports and Airports Minister Silvio Costa Filho told

reporters that he met with LATAM CEO Roberto Alvo and Brazilian

President Luiz Inacio da Silva in Chile recently to discuss the

airline's growth plans.

"They expect to grow more than 10% in the next three years

and are considering a purchase of some 30 aircraft that could be

from Embraer ( ERJ )."

"LATAM has indeed opened talks with Embraer ( ERJ ) and we have been

working so they can analyze a purchase of Embraer ( ERJ ) planes. But we

cannot impose a deal, that would be incomprehensible and a very

bad sign for free markets."