Category Archives: LAN Airlines (Argentina)

LATAM Airlines Group loses $330 million in the 2Q

LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santago and Sao Paulo) reported it lost $330 million in the second quarter. The group was created last year with the merger of the two airlines. The group is struggling in Brazil with TAM due to a weakening Brazilian economy. TAM is cutting costs and reducing flights.

Read the full report: CLICK HERE

LATAM Airlines Group Fleet Plans (excerpt from the report):

LATAM Airlines Group 8:2013 Fleet

Top Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Sporting new Sharklets, Airbus A320-214 PR-MYY (msn 5591) taxies at the Sao Paulo (Guarulhos) hub.

LAN Airlines (Chile): AG Slide Show

TAM Linhas Aereas: AG Slide Show

Bottom Copyright Photo: Alvaro Romero/ModoCharlie.com. Boeing 777-F6N N772LA (msn 37708) arrives at the Santiago hub.

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LAN Argentina is evicted from its hangar in Buenos Aires, can it survive?

LAN Argentina (Buenos Aires) has been served notice to terminate its maintenance hangar lease at the downtown Aeroparque Jorge Newbery Airport in Buenos Aires. The Argentine airline of the LATAM Group is being evicted from the Aeroparque hangar although it has been faithfully paying its rent and has a contract through 2023. The carrier needs the hangar to maintain operations in Argentina. LAN Argentina has stated it will take the forced eviction to court in Argentina.

The airline competes against state-run Aerolineas Argentinas (Buenos Aires). According to this report by the BBC, the current government of Argentina, headed by Cristina Fernandez de Kirchner, has been accused of protecting state-run companies in the past.

Meanwhile the government of Argentina has accused LAN Airlines and LAN Argentina of stirring up worker sentiment against Argentina.

Read the full report from the BBC: CLICK HERE

Read the full report from Reuters: CLICK HERE

Read analysis by Argentina Airline News: CLICK HERE

Copyright Photo: Bernardo Andrade/AirlinersGallery.com. LAN Argentina’s Airbus A320-233 LV-BFO (msn 1877) in the Oneworld scheme, taxies at Aeroparque. The government wants to reportedly reserve the convenient downtown airport for the exclusive use of Aerolineas Argentinas and its subsidiary Austral.

Video: Arriving over Buenos Aires and landing at AEP:

LAN Argentina: AG Slide Show

Boards of LAN and TAM agree to continue with the merger and aim for completion by the end of the first quarter 2012

LAN Airlines (Santiago) has issued the following statement concerning the proposed merger with TAM:

“After thorough analysis of the content and implications of the resolution of the Tribunal de Defensa de la Libre Competencia de Chile (TDLC), Chile’s antitrust court, regarding the merger process between LAN Airlines S.A. and TAM S.A., the Boards of Directors of both companies have confirmed their decision to move forward with the transaction.

LAN and TAM believe the mitigation measures imposed by the TDLC do not significantly impact the synergies generated by the transaction and do not modify in any material respect the companies’ joint strategic development plans. From the analysis, the estimated impact on the expected synergies would not exceed US$10 million per year, reducing by such amount the total previously announced synergies of US$400 million.

The mitigation measures considered in the judgment by the TDLC are broadly in line with the measures that LAN and TAM were prepared to accept in January 2011 in the out-of-court settlement negotiated with the Fiscalía Nacional Económica (FNE), Chile’s antitrust authority. Nevertheless, on October 3, LAN and TAM presented an appeal before the Supreme Court objecting three of the mitigation measures which the companies deem to be unconstitutional and disproportionately severe.

The three measures being appealed are:

1.- the seventh condition, which establishes the obligation to submit for approval ex – ante certain code share agreements that LATAM Group may have reached with airlines outside of its chosen alliance. This is unnecessary considering the existence of an alternative measure, which requires the company to inform the FNE of all such agreements so that it may analyze and determine if they are detrimental to the competitive environment;

2.- the eight condition, which establishes the obligation to give up four fifth freedom rights to Lima, Peru. This condition goes against a 2009 ruling of the Supreme Court, which overturned a previous ruling of the TDLC which attempted to impose measures that would have had the same impact; and

3.- the fourteenth condition, which provides excessive intrusive powers to the FNE and to the consultant that the TDLC requires the company to hire to collaborate in the surveillance process. The company considers that the proposed “unrestricted, total, permanent and continuous” access that this consultant would have, both in and outside of Chile, to LATAM Group’s data bases, systems, accounting, installations, offices, call centers and others, is unlimited and differs from what is provided for by law since it lacks previous judicial controls and is therefore illegal in that it affects constitutional rights.

In its appeals before the Supreme Court, it is highlighted that the seventh and fourteenth measures have legitimate legal and constitutional alternatives which are in accordance with the underlying spirit of the measures proposed by the TDLC.

LAN and TAM confirm their commitment to implement the merger in the shortest possible timeframe, which they expect to be towards the end of the first quarter 2012. It is important to highlight that LAN and TAM plan to move forward, in parallel with the Supreme Court appeal process, with the various regulatory and corporate authorizations that are still required to complete the transaction.”

LAN Slide Show: CLICK HERE

Copyright Photo: Alvaro Romero. Please click on the photo for additional information.

JetBlue Airways and LAN to offer interline connections

JetBlue Airways and LAN Airlines (Santiago) and its affiliates LAN Peru, LAN Argentina and LAN Ecuador, yesterday (March 8) announced the launch of interline agreements that bring new connecting options for travelers flying between major destinations throughout the Americas via New York’s John F. Kennedy International Airport.

Under the interline agreement, customers will be able to purchase a single electronic ticket that combines travel on JetBlue and any of the LAN carriers, bringing new options and new destinations to customers of both airlines.

Copyright Photo: Stephen Tornblom. Please click on the photo for additional information about this aircraft.

JetBlue Slide Show: CLICK HERE

LAN Airlines Route Map (The Americas). LAN Airlines already extensively interlines with American Airlines at the Miami hub.