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LAN Airlines (Chile)

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LAN Airlines
IATA
LA		 ICAO
LAN		 Callsign
LAN CHILE
Founded March 5, 1929
Hubs Comodoro Arturo Merino Benítez International Airport (Santiago)
Secondary hubs Jorge Chávez International Airport (Lima)
Focus cities
Frequent-flyer program LANPASS
Airport lounge VIP Lounge Neruda / Mistral
Alliance Oneworld
Subsidiaries
Fleet size 105
Destinations 130
Company slogan El encanto de volar (The charm of flying)
Parent company LATAM Airlines Group
Headquarters Las Condes, Santiago Province, Chile
Key people
Revenue US$ 5.7 billion (2011)
Net income US$ 320.2 million (2011)
Website www.lan.com

LAN Airlines S.A. (NYSE: LFL) - (Bolsa de Comercio de Santiago: LAN) is a group of South American Airlines based in Santiago, Chile and part of LATAM Airlines Group, Latin America's largest Airline holding. LATAM was formed by the takeover by LAN of Brazilian TAM Airlines which was completed on June 22, 2012, although both companies operate with different certificates and liveries.[1] Its headquarters is located in Las Condes, Santiago Province.

LAN is the flag carrier of Chile, the predominant airline in Chile, Perú and Ecuador, the second largest carrier in Argentina and Colombia through its local subsidiaries. LAN is currently positioned amongst the largest airlines in Latin America, serving Latin America, North America, the Caribbean, Oceania, and Europe. Since 2000, it is a member of the Oneworld airline alliance. LAN Airlines is the 49th oldest air carrier in the world from its foundation date, and the 10th oldest airline in operation today. Its main hub is Santiago International Airport.

As of December 2011, LAN Airlines had 21,800 employees and a fleet of 149 aircraft (137 orders) serving 22.6 million passengers per year to 97 destinations (including subsidiaries).[2]

Contents

History

Early years

The airline was founded by Chilean Air Force Commodore Arturo Merino Benitez (After whom Santiago International Airport is named), and began operations on March 5, 1929 as Línea Aeropostal Santiago-Arica (English: Postal Air Line Santiago-Arica), under the government of President Carlos Ibáñez del Campo. In 1932 It was rebranded as Línea Aérea Nacional de Chile (In English: National Air Line of Chile), using the acronym LAN-Chile as commercial name. LAN-Chile's first fleet consisted of de Havilland Moth planes.[3]

Merino Benitez was a strong defender of Chilean carriers exclusivity on domestic routes, diferring from most Latin American countries which easily granted authorization on domestic flights to US based Panagra, influenced by the propaganda made by Charles Lindbergh's Atlantic crossing.[4] Also because of this reason, US built airplanes became more difficult to incorporate to LAN's fleet until the beginning of WWII. In 1936, 2 French Potez 56 airplanes were purchased while In 1938, 4 German Junkers Ju 86 were incorporated to the fleet. During that same year, a joint cooperation agreement was established with Lloyd Aéreo Boliviano and the Peruvian carrier Faucett. Another agreement with Lufthansa was signed for flights to & from Europe and the America's Atlantic coast. [4]

In 1940, given the restrictions imposed during WWII on access to spare parts for the Juncker's BMW engines, LAN-Chile had to replace them for Lockheed Electra A-10 planes, adding in 1941 further Lockheed Lodestar C-60 and Douglas DC-3 in 1945.

Post War and International Service Expansion

On August 23, 1945 LAN-Chile became member of the newly formed IATA. In October 1946, It started international service to Buenos Aires at Morón Airport and in 1947 to Punta Arenas, Chile's most distant continental destination.[5]

In December 1954, LAN-Chile made its first commercial flight to Lima, Perú. On December 22, 1956 a LAN-Chile Douglas DC-6 made the world's first commercial flight over Antarctica. Since then, all LAN's DC-6 fleet had painted on their fuselage "Primeros sobre la Antártica (First over Antarctica)", using this same aircraft type for its first commercial service to Miami International Airport in 1958.[6]

LAN-Chile entered the jet era in 1963, purchasing 3 French Sud Aviation Caravelle VI-R, which initially flew to Miami, Guayaquil, Lima, Panama City and within Chile to Punta Arenas, Puerto Montt and Antofagasta.[7]

In 1966, LAN-Chile purchased from Lufthansa its first Boeing 707 in exchange for flying rights in the Lima-Santiago route.

With this aircraft model, the company developed new long haul routes to the USA, Oceania and Europe. LAN-Chile started on April 15, 1967, the route Santiago-John F. Kennedy International Airport and Santiago-Easter Island on April 8. In October 1967 a LAN-Chile Sud Aviation Caravelle made the first ILS landing in South America at Lima's Jorge Chávez International Airport.[8] On January 16, 1968, the flight Santiago-Easter Island is extended to Papeete-Faa'a International Airport, in Tahiti, French Polynesia. On September 4, 1974 this route is further enlarged to Fidji.

In 1969, LAN-Chile expanded its destinations to Rio de Janeiro, Asunción and Cali with new Boeing 727 planes.[8] In 1970, with further Boeings 707 LAN-Chile opened its first transatlantic routes to MadridBarajas Airport, Frankfurt Airport and Paris-Orly.

Since its inception and until 1970 the airline had its headquarters, main hub and maintenance center at Los Cerrillos Airport (ICAO: SCTI; IATA: ULC) , in South-West Santiago.[9] The restrictions imposed by the growing metropolitan area of Santiago and the need for modern, jet-era airport facilities, which could safely accommodate both domestic and intercontinental flights, drove the need to relocate the Chilean capital's principal airport from Los Cerrillos in the denser southwest metropolitan region of Santiago to the more rural northwest metropolitan area. For this reason, Santiago International Airport in Pudahuel was built between 1961 and 1967, fully moving LAN-Chile's flights to this new airport in 1970.

On February 10, 1974, A LAN Chile Boeing 707 made the world's first transpolar non-stop flight between South America (Punta Arenas Airport) and Australia (Sydney Kingsford-Smith Airport).[10]

In 1980, the company replaced its Boeing 727's for 737-200 Advanced in its domestic routes. In addition, Lan Chile's first wide body jets are incorporated: the McDonnell Douglas DC-10-30 to be used in its routes to Los Angeles, Miami and New York. That same year, the maintenance facilitites were relocated from Los Cerrillos to Arturo Merino Benitez Airport.

In 1985 LAN-Chile implemented a program of flights around the world called "Cruceros del Aire" (Air Cruises), pioneers and unique in Latin America. The initial version included two flights per year (April 26 and September 26) on a Boeing 707 named "Three Oceans" by the fact that It crossed the Atlantic, Indian and South Pacific Oceans, visiting 18 different places. The aircraft was specially prepared for these flights. It had 80 seats in first class, thus providing passengers with ample room for their confort. 80 Tourists were selected for a 31-day tour that included visits to the main cities of Africa, Asia and Oceania. Such flights were made until 1989, marketed according to their route under various names such as "Around the World", "Three Oceans", "Three Continents," Mediterranean "," East-West China "etc.[11]

In June 1986, LAN enters into service Boeing 767-200ER's as a replacement of its DC-10 fleet, with a new route to MontréalPierre Elliott Trudeau International Airport. In 1988, LAN Chile starts the construction of its Maintenance Center at Santiago Airport and adds to its fleet a Boeing 747-100 on lease from Aer Lingus during the summer season on its US flights.

Privatization and Internationalization

In September 1989, the Chilean government privatized the carrier, selling a majority stake in the company to Icarosan and Scandinavian Airlines (49%), which subsequently sold its stake a few years later to local investors. Since 1994, major shareholders have been the Cueto Family and businessman Sebastián Piñera (Until 2010), who sold his shares when taking office as President of the Republic of Chile.

The approval from the Chilean Anti-Trust Authority resulted in the acquisition of the country's second largest airline Ladeco on August 11, 1995. In October 1998, Lan Chile merged its cargo subsidiary Fast Air with Ladeco, forming LAN Express.

In 1998 LAN Airlines established a joint venture with Lufthansa called LLTT (Lufthansa-LAN Technical Training S.A.) with the aim to satisfy the needs for aircraft maintenance training in Latin America. LLTT is based at LAN's hangars in Comodoro Arturo Merino Benitez Airport.[12] LLTT is the only A320 Maintenance Simulator (CMOS) training provider in Latin America.[13]

In 2000, LAN Cargo opened up a major operations base at Miami International Airport and currently operates one of its largest cargo facilities there.

In 2002, LAN Chile starts its internationalization process through LAN Perú and LAN Ecuador.

In March 2004 Lan Chile and its subsidiaries LAN Perú, LAN Ecuador, LAN Dominicana and LANExpress became unified under the unique LAN brand and livery, eliminating each airline country name on the brands. On June 17, 2004 LAN Chile changed its formal name to LAN Airlines (which was said to mean Latin American Network Airlines, even though the airline says LAN is no longer an acronym) as part of this re-branding and internationalization process.

In mid-2005 LAN opened its subsidiary LAN Argentina in Argentina and operates national and international flights from Buenos Aires, and is the third largest local operator behind Aerolíneas Argentinas and Austral. This subsidiary is also under the single LAN brand.

As of August 1, 2006, LAN Airlines merged first and business classes of service into a single class, named Premium Business.

On October 28, 2010, LAN acquired 98% ot the shares of AIRES, the second largest air carrier in Colombia. In December 3, 2011 AIRES started operating as LAN Colombia under the unified LAN livery.

LATAM Airlines Group

On August 13, 2010, LAN signed a non-binding agreement with Brazilian airline TAM Airlines to merge,[14] and form the LATAM Airlines Group.[15] The merger was completed on June 22, 2012.[1] The Administrative Council of Economic Defense of Brazil (CADE) and the Tribunal de Defensa de la Libre Competencia (Chilean Court at Law for Antitrust) (TDLC) approved the merger subject to mitigation measures. The airlines have to surrender four daily São Paulo-Guarulhos International Airport slot pairs to other airlines willing to fly the Santiago-Sao Paulo route, to give up membership in either Star Alliance (In which TAM Airlines is member) or Oneworld, and to interline deals with other airlines that operate selected routes, among other provisions. [16]

Corporate affairs

The airline has its headquarters on the 20th floor of the 5711 Avenida Presidente Riesco Building in Las Condes, Santiago Province.[17] Previously its headquarters were in Estado 10 in downtown Santiago de Chile.[18]

Subsidiaries

Oneworld Affiliate member (*)

Cargo branches
Former subsidiaries

Destinations

Main article: LAN Airlines destinations

LAN Airlines operates in 31 international, 17 domestic (Chile), 5 seasonal and 4 marketed destinations in 21 countries. When the airline takes delivery of the Boeing 787 Dreamliner it will start flights to Washington D.C. and London-Heathrow. It is also considering starting flights to Dallas/Fort Worth, Houston and Atlanta in the USA; in Europe to Barcelona, Rome and Zurich; and to start operations in Asia to Shanghai, Tokyo and Hong Kong. With the delivery of more Airbus A319s, Airbus A320s and new deliveries of the Airbus A321, it will start new destinations in South America; it has considered Panama, San Jose de Costa Rica, Curitiba, Asunción, Manaos, Rosario, Cuzco and others.[citation needed]

Codeshare agreements

Lan Airlines has codeshare agreements with the following airlines as of January 2013:[19]

Fleet

For the subsidiaries fleet, see LAN Argentina, LAN Colombia, LAN Ecuador, and LAN Perú.
For the cargo fleet, see ABSA Cargo Airline, Florida West International Airways, LAN Cargo, and LANCO.

LAN became the launch customer for the Pratt & Whitney PW6000 engine on the Airbus A318.[20] Its Airbus A319s and Airbus A320s are equipped with International Aero Engines V2500s. Lan Airlines has recently renovated its Boeing 767s, adding amenities like flat bed seats in Premium Business class, which offers 180 degrees of recline, and new touch screen personal TVs with on-demand content.[21]

In late 2007, LAN Airlines announced that it was planning to acquire some Boeing 777 freighters for its LAN Cargo fleet.

As of May 2008, LAN Airlines retired its last 737-200 from service; the 737-200 was replaced by the Airbus A318. In addition to its A320's family aircraft and Boeing 767 family, LAN will buy the new Boeing 787 for its long haul routes such as Auckland, Sydney and European routes, replacing its Airbus A340-300s. With this new aircraft it plans to open new routes like London-Heathrow and Rome-Fiumicino. In February 2011, LAN announced plans to order 10 A318 fleet in 2011, to purchase another 128 airliners from the A320 family and 1 more order of A340-300. LAN Airlines is the American launch customer for the Sharklets for its A320 fleet.[22]

The average LAN Airlines fleet age is 5.1 years old as of March 2013.[23] LAN Airlines has also shown interest in the Airbus A380, but the airline has not confirmed an order.[24]

In 2012, Lan Airlines became the launch customer in the Americas of the Boeing 787 Dreamliner.

The LAN Airlines fleet consists of the following aircraft (as of March 2013):[25][26][27][28]

LAN Airlines Mainline Fleet
Aircraft In fleet Orders Passengers Notes
J Y Total
Airbus A318-100 3 126 126 To be phased out until December 2013
Airbus A319-100 24 33 144 144
Airbus A320-200 34 16 174 174
15 135 150
Airbus A320neo 0 20 TBA Deliveries 2015-2020
Airbus A321-200 0 10 TBA Deliveries 2013-2016
Airbus A340-300 4 42 218 260
Boeing 767-300ER 37 3 18 220 238
30 191 221
Boeing 787-8 3 19 30 217 247 Deliveries until 2018
Boeing 787-9 0 10 45 260 305 Deliveries 2014-2018
Total 105 111
Retired fleet

LAN Airlines had also operated these following aircraft since it started services on the Santiago-Ovalle, Copiapó-Antofagasta-Iquique-Arica Route with the Havilland Gipsy Moth carrying mail and 2 passengers, 1929.

LANPASS

LAN Airlines created the LANPASS frequent flyer program to reward customer loyalty. There are currently over four million members. Every year, over 250,000 LANPASS members fly for free. LANPASS members earn kilometres every time they fly with LAN, a Oneworld alliance member, a LANPASS-affiliated airline or by using the services of any LANPASS-associated business around the world.:[29]

The LANPASS Program has three Elite membership categories:[30]

South America AirPass

The "South America AirPass" describes an airfare that allows passengers residing outside of South America to purchase individual, one-way coupon for flights between any of the South American destinations that make up LAN's at a price determined by two factors:

  1. Whether the passenger reaches South America with LAN or with another Oneworld alliance member.
  2. The distance between the point of departure and the destination.

The purchase of the AirPass coupons must be made at the time intercontinental travel is purchased and outside South America.

Incidents and accidents

 This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2009)

References

  1. ^ a b "Chile's LAN Airlines completes takeover of rival TAM". Reuters. 2012-06-22. 
  2. ^ "Media Center". Latam Airlines Group. 2012-12-31. Retrieved 2013-03-20. 
  3. ^ "Asociación de Pilotos en Retiro". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  4. ^ a b "Nuestra Historía". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  5. ^ "Al finalizar 1945 las operaciones regionales en Magallanes se desarrollaban con todo éxito y al igual como sucedió en los comi". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  6. ^ "DE LOS DOUGLAS DC-6B A LOS CONVAIR 340 / 440". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  7. ^ "DE LOS CARAVELLE VI R A LOS AVRO HS 748". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  8. ^ a b "De los Avro HS-748 a los Boeing 707". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  9. ^ "World Airline Directory." Flight International. March 26, 1970. 487. "Head Office: Los Cerrillos Airport, Santiago, Chile."
  10. ^ "La adquisición de los Twin Otter iba a significar un nuevo enfoque a la regional sur de LAN, por lo que se iniciaron los estud". Pilotosretiradoslan.cl. Retrieved 2013-03-20. 
  11. ^ "Preludio de la privatización de Lan Chile". Pilotosretiradoslan.cl. 1979-06-26. Retrieved 2013-03-20. 
  12. ^ "Company". Lltt.cl. Retrieved 2013-03-20. 
  13. ^ "Reasons For Choosing Us". Lltt.cl. Retrieved 2013-03-20. 
  14. ^ "LAN says signs non-binding deal with TAM to merge". Reuters. August 13, 2010. 
  15. ^ "LAN and TAM aim to complete merger by mid 2011". Retrieved August 16, 2010. 
  16. ^ "LATAM Airlines: It Will Happen! | Travel Research - Industry Events - PhoCusWright Conference". Phocuswright.com. Retrieved 2013-03-20. 
  17. ^ "Annual Report 2010." (Archive) LAN Airlines. p. 7. Retrieved on January 25, 2013. "Corporate Headquarters Avenida Presidente Riesco 5711 20th Floor Las Condes, Santiago, Chile"
  18. ^ "World Airline Directory." Flight International. March 27-April 2, 1991. 99. "Head Office: Estado 10, Santiago, Chile."
  19. ^ "LANPASS - Vuelos a Chile, Perú, Argentina, Ecuador y Latinoamérica (Sudamérica)". LAN.com. Retrieved 2013-03-20. 
  20. ^ "LAN Airlines takes delivery of its first A318" (Press release). Airbus. June 5, 2007. Retrieved July 6, 2010. 
  21. ^ Latin America Travel Association. "Latin American Travel Association - LAN Airlines". Retrieved 16 October 2012. 
  22. ^ "FARNBOROUGH: Germania firms A319 order". Retrieved July 21, 2010. 
  23. ^ "Fleet age LAN Airlines". Airfleets.net. Retrieved October 25, 2010. 
  24. ^ 4-traders. "Airbus Says Lan, Tam Have Shown Interest In A380 Order". 4-Traders. Retrieved 2013-03-20. 
  25. ^ "Directory: World Airlines Part 2 (C-L)". Flight International: 3180. April 7, 2009. 
  26. ^ Quarterly Financial Filings (FECU) (September/2006)
  27. ^ "LAN orders 30 A320s". Retrieved December 23, 2009. 
  28. ^ LAN Airlines Fleet
  29. ^ "LANPASS - Vuelos a Chile, Perú, Argentina, Ecuador y Latinoamérica (Sudamérica) - LAN.com - Acerca de LANPASS". LAN.com. Retrieved 2013-03-20. 
  30. ^ Terms and Conditions Of the LANPASS frequent flyer program
  31. ^ a b c "LAN Oneworld Tier Status". Oneworld. Retrieved July 6, 2010. 
  32. ^ Aviation Safety Network CC-CLD accident synopsis retrieved September 8, 2011.]
  33. ^ Aviation Safety Network CC-CCG accident synopsis retrieved May 28, 2010.
  34. ^ "Accident description". Aviation Safety Network. Retrieved 18 February 2013. 
  35. ^ "CC-CBY Accident Description". Aviation Safety Network. Retrieved February 14, 2011. 
  36. ^ "Witnesses Tell of Icy Deaths in Plane Crash - Los Angeles Times". Articles.latimes.com. 1991-02-22. Retrieved 2013-03-20. 
  37. ^ Accident Database: Accident Synopsis 02201991
  38. ^ Viesturs, Ed; Bangs, Richard (2001). Richard Bangs, adventure without end. Seattle: The Mountaineers Books. p. 80. ISBN 0-89886-860-2. 
  39. ^ "Lan Chile". The Sidney morning Herald. Retrieved 18 February 2013. 
  40. ^ "Incident: Cayman B733 and LAN Chile B763 at New York on Jul 5th 2008, loss of separation on perpendicular runway due to go-around". The Aviation Herald. Retrieved 18 February 2013. 

External links

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Constituents as at 2 March 2010
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