Category Archives: LAN Airlines

LAN Airlines continues to expand Boeing 787 operations

LAN Airlines (Santiago) continues to expand its 247-seat Boeing 787 operations. As previously reported, daily Santiago-Miami service was inaugurated on August 9 as well as weekly 787 flights to Cancun and Punta Cana also on August 9.

Santiago-Mexico City 787 service will start now on December 11 (delayed from November 15) on alternating days.

Santiago-Sao Paulo (Guarulhos) flights start on October 1 (three days a week) and daily starting in November).

Finally daily Santiago-Los Angeles service starts on October 1.

The company continues to operate the 787 to Buenos Aires, Madrid and Frankfurt as well as New York (JFK).

In financial news, the LATAM Airlines Group reported a net loss of $58.9 million for the second quarter, reduced from a net loss of $329.8 million in the same quarter a year ago. According to the group, “results this quarter were negatively affected by reduced passenger and cargo demand during the FIFA World Cup soccer tournament held in Brazil, as well as by very week seed exports in the cargo business.”

Read the full report: CLICK HERE

Copyright Photo: Nick Dean/ Boeing 787-8 CC-BBB (msn 38466) taxies at Paine Field near Everett before the hand over to the carrier.

LAN Airlines (Chile): AG Slide Show


LAN Airlines to add back the Boeing 787 on the Santiago-Lima-Los Angeles route on October 14

LAN Airlines (Chile) (Santiago) will resume Boeing 787-8 Dreamliner service on the Santiago-Lima-Los Angeles route on October 14. The 787 will replace a Boeing 767-300 on a daily basis per Airline Route.

Copyright Photo: Alvaro Romero/ Boeing 787-8 CC-BBA (msn 38471) prepares to land at the Santiago de Chile base (SCL).

LAN Airlines: AG Slide Show


LAN is facing a possible mechanics strike on June 26 in Lima, LAN Cargo breaks ground on a new hangar at Miami

LAN Airlines (Santiago) may be somewhat impacted by a possible strike by 70 percent of its LAN Peru (Lima) mechanics maintaining  LAN and TAM aircraft. The mechanics are based in Lima, Peru.

The International Transport Workers’ Federation-ITF has issued this statement:

The ITF (International Transport Workers’ Federation) LATAM network reports that it is hearing of concerns from passengers due to fly on LAN and TAM planes during a strike expected to begin in Peru on June 26. Unions report that more than 200 mechanics – over 70 percent of all LAN Peru mechanics – will not be certifying airplane flights during the strike, which is expected to affect operations across Latin America, including during the World Cup.

LAN Peru aviation mechanics are responsible for the security of the flights of LAN and TAM Airlines (the LATAM Airline Group), and their function is fundamental to the maintenance of the aircraft and the safety of flights.

On June 26-27 a strike is likely to take place, called by the SITALANPE trade union, which represents 70 per cent of all those mechanics. This is expected to result in cancellations and delays across the region. The mechanics are unequivocal: their labor is not replaceable because they are certified to work on the aircraft. “We are the ones that review the planes each time that they land and if we do not sign the logbook of the aircraft, they do not leave. Without our approval, no plane will be able to fly and therefore the whole company will stop,” explained Juan Carlos Talavera, a LAN Peru aviation mechanic and press secretary of SITALANPE.

Lima, Peru, is the central hub for maintenance work in the holding company that includes both the LAN and TAM Airlines. The Peruvian mechanics maintain the cargo and passenger aircraft for LAN Argentina, LAN Chile, LAN Ecuador, LAN Peru, and TAM and LAN Cargo.

Dario Castillo Alfaro, the leader of the LAN Chile mechanics’ union, commented: “Our mechanics’ union is supporting the Peruvian workers and is ready to express its solidarity and support. As Chileans, we are depending on our Peruvian co-workers to protect the aviation sector in Latin America from the kind of cost cutting in operations that threatens the security of our passengers. As LAN and TAM workers we know that on behalf of passengers and aviation workers, it is our obligation to inform customers of potential problems and risks. The future of aviation in South America is being threatened by the company’s refusal to negotiate in Peru and Argentina.”

In other news, LAN Cargo (Santiago), an affiliate of LATAM Airlines Group, S.A. and part of South America’s largest airline group comprised of LAN Airlines and its affiliates and TAM Airlines, officially broke ground on a new 98,242-square-foot state of the art maintenance hangar facility at Miami International Airport. The hangar will be LATAM Airlines Group’s first maintenance hangar in the United States. The project represents an investment of more than $15 million dollars and is estimated to create more than 300 new direct and indirect jobs in the first five years, further increasing LATAM Airline Group’s participation and commitment to economic growth in Miami-Dade County and the State of Florida.

The new facility includes state of the art design, technology, and meets the highest standards of environmental compliance. The innovative roof design with the tail cupola will accommodate Boeing 777-300 and Airbus A350 size aircraft, and still meet the applicable structure height requirements.

On June 23 ITF issued this subsequent announcement:

This week, the aviation unions of the ITF (International Transport Workers’ Federation) Network of LATAM Unions in Chile, Argentina, Ecuador, Peru and Colombia will be taking action to support the mechanics of LAN Peru and the flight attendants of LAN Argentina. The workers will inform passengers in the airport about the actions.

The passengers need to know that the demands of the LAN and TAM Airline workers are fair and that the company has the resources to resolve the conflicts. Aviation labour conditions impact the quality of life of workers and potentially the high standards of service on flights.

LAN Peru Mechanics

On June 26th and 27th, a planned strike of the mechanics union (SITALANPE), who represent 70 percent of the workforce, would affect flights in the country and the region. Licensed aviation mechanics are required to certify all aircraft.

LAN Argentina Flight Attendants

In Argentina, the flight attendants have suffered time and again delays in their collective rights. Since 2005, when the company began operations in Argentina, LAN has refused to sign a collective agreement to regulate the flight attendants’ working conditions.

LAN Peru union leader reports detention and threats in the Lima Airport

Juan Carlos Talavera Flores, the press secretary of the SITALANPE union of Peru, has reported that he was detained on Friday, June 20th. He reports that during his detention he was threatened by a security staff from the airport. The security staff introduced himself as being sent by LAN Peru. Mr. Talavera explained that this security staff member told him that LAN Peru was going to bring a legal notary to verify his assumed illegal actions.

Mr. Talvera explains that it was a confusing, frightening and strange action by LAN Peru to intervene with his detention. The leader of the mechanics union states that the police, and the security personnel of the airport sent by LAN Peru, detained him while he was distributing information to the passengers about delays and cancellations which would occur during the upcoming LAN Peru strike of June 26 and 27.

At the police station, the union leader reports that he was searched unfairly for drugs and incriminatory evidence. At the jail, he was threatened. Hours later he was released without charges.

Juan Carlos Talavera Flores, is a leader in the international solidarity campaign to protect aviation standards in South America. His detention was made while he was distributing information in the Jorge Chavez Airport in Lima and answering questions from passengers about the upcoming industrial actions and strikes in LAN and TAM airlines.

Copyright Photo: Bruce Drum/ LAN Cargo’s Boeing 767-316F ER CC-CZZ (msn 25756) approaches the runway at Miami International Airport (MIA).

LAN Cargo: AG Slide Show

LAN Airlines (Chile): AG Slide Show


LATAM swings to a net profit of $52 million in the third quarter

LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santiago and Sao Paulo) swung to the black in the third quarter with a net profit of $52 million versus a loss of $49 million a year ago for the same period.

Read the full report: CLICK HERE

Read the analysis by Reuters: CLICK HERE

Copyright Photo: Rodrigo Cozzato/AirlinersGallery/com. LAN Cargo’s (LAN Airlines Chile) Boeing 777-F16 N778LA (msn 41518) departs from Viracopos Airport near Sao Paulo.

LAN Airlines: AG Slide Show

TAM Linhas Aereas: AG Slide Show

LAN Airlines receives its first Boeing 787-8 Dreamliner

LAN Airlines (Santiago) and Boeing (Chicago) yesterday (August 31) celebrated the delivery of the first 787-8  Dreamliner (CC-BBA) to LAN making it the first airline in the Americas to receive the new airplane.

LAN is only the fourth customer in the world to include the Boeing 787 in its fleet with 32 of this new aircraft on order and lease.

LAN’s top executives, Boeing representatives and authorities celebrated the delivery at an event at the Future of Flight Aviation Center in Mukilteo, Washington, near Boeing’s 787 final assembly factory in Everett.

The 787 Dreamliner is composed of light-weight composites and features numerous systems, engine and aerodynamic advancements making it more efficient to operate compared with its competition. It is the first mid-sized airplane capable of flying long-range routes, enabling airlines to open new, non-stop routes preferred by passengers.

The first cities that LAN’s fleet of 787s will fly to are Santiago, Buenos Aires, Lima, Los Angeles, Madrid and Frankfurt. The aircraft will begin to fly commercially in the next few months, and these routes will be added gradually during its first year of operation.

Top Copyright Photo: Nick Dean. Boeing 787-8 CC-BBA (msn 38471) arrives back at Everett (Paine Field) after a test flight before the hand over.

Bottom Copyright Photo: Alvaro Romero. CC-BBA is pictured being tugged after arriving at its Santiago, Chile base on September 1 at 09:45 am (0945) (GMT-4) local time. The aircraft performed a flypast over Runway 17L, then landed at 10:00 am (1000). CC-BBA was received with a water cannon salute courtesy of SCL Airport fire and rescue service (Servicio de Salvamento y Extinción de Incendio, SSEI).

LAN Airlines: 

LAN acquires TAM, becomes the LATAM Airlines Group

LAN Airlines S.A. (Santiago) (which has been renamed LATAM Airlines Group S.A.) and TAM S.A. (Sao Paulo) on June 22 completed their exchange offer. The acquisition has created the LATAM Airlines Group S.A. LATAM Airlines Group S.A. will offer passengers more flights to more destinations than any other affiliated group of airlines in South America, initially reaching about 150 destinations in 22 countries and transporting cargo to 169 destinations in 27 countries.

As previously announced, the transaction was carried out through an exchange offer in which TAM’s shareholders could elect to exchange their TAM shares for LAN shares at a ratio of 0.9 LAN shares for each TAM share. The offered LAN shares will be delivered in the form of BDRs (Brazilian Depositary Receipts) in Brazil and ADRs (American Depositary Receipts) in the United States. The exchange offer, which was materialized with the auction on June 22, 2012, was subject to the condition that more than 2/3 of the TAM shares that participate in the offer agree with the deregistration of TAM as a public company in Brazil. This delisting condition was satisfied when 99.9% of the participant shares agreed with TAM’s deregistration. The tendered shares together with the TAM shares committed by the TAM Controlling Shareholders represented 95.9% of the total outstanding shares of TAM.

According to this report by Reuters, LATAM Airlines will decide within the next six months which airline alliance it will stay with. Currently LAN is a member of the OneWorld alliance, while TAM belongs to Star Alliance.

Read the full report: CLICK HERE

Top Copyright Photo: Alvaro Romero.

LAN Airlines: 

TAM Linhas Aereas: 

Bottom Copyright Photo: Marcelo F. De Biasi.

LAN Airlines reports net income of $76.1 million for the first quarter of 2012

LAN Airlines S.A. (Santiago) announced its consolidated financial results for first quarter ended March 31, 2012.

  • LAN reported net income of $76.1 million for first quarter 2012, a decrease of 21.8% compared to the $97.2 million reported in first quarter 2011. Results this quarter were impacted by a 14.7% increase in fuel prices and a more challenging environment in the cargo business, as well as by the ongoing development of LAN Colombia’s operations. In addition, first quarter 2012 results include a one-time cost of $14.3 million related to the successful completion of the collective bargaining process with certain unions.
  • For first quarter 2012, operating income reached $111.2 million, a 27.4% decrease compared to the $153.3 million in first quarter 2011. Operating margin reached 7.2%, a decrease of 4.0 points compared to 11.2% in 2011.
  • Total revenues in first quarter 2012 reached $1,536.7 million compared to $1,364.9 million in first quarter 2011 due to a 16.4% increase in passenger revenues and a 6.2% increase in cargo revenues. Revenue increases continue to reflect healthy passenger operations, reaching a record high load factor of 82.9%, whereas the cargo business faced a more challenging demand and competitive environment. Passenger and cargo revenues accounted for 74.1% and 23.9% of total revenues, respectively, in first quarter 2012.
  • LAN and TAM S.A. have successfully obtained the required registrations and authorizations in Brazil and in the United States in order to commence and complete an offer to exchange TAM shares initially for Holdco II shares and ultimately for LAN shares, in the form of Brazilian Depositary Receipts (“BDRs”) in Brazil and American Depositary Receipts in the United States. On May 10, 2012, LAN and a newly formed entity, Holdco II, commenced the exchange offer for TAM shares simultaneously in Brazil and in the United States. The exchange offer is currently scheduled to remain open until 5:00 pm, New York time (6:00 pm, Sao Paulo time) on June 11, 2012 and the auction will be held on Bovespa at 9:00 am, New York time (10:00 am, Sao Paulo time) on June 12, 2012.

Copyright Photo: Luimer Cordero.

LAN Airlines (Chile) Slide Show: CLICK HERE

LAN Airlines announces the first routes for its new Boeing 787 Dreamliners

LAN Airlines (Santiago) has announced it will incorporate the new Boeing 787 Dreamliner into the company’s fleet starting in late 2012. The new airliner that will revolutionize the airline industry by having the latest technology, landed for the first time in Chile on March 27, becoming a major attraction of the current International Air and Space Fair, FIDAE in Santiago.

LAN announced during the opening ceremony of the company’s display in the Fair that the first destinations of the 787 will be from Santiago to Buenos Aires, Lima, Los Angeles, Madrid and Frankfurt. These routes will gradually be integrated through the aircraft’s first year of service.

The configuration of the cabin on the first LAN 787-8 aircraft will include 217 economy class seats and 30 seats for Premium Business class.

LAN Airlines (Chile) will be the first airline in Latin America, and one of the first in the world, to incorporate this aircraft, receiving the first 787 in late 2012 (LAN is expecting to receive 32 copies in the first 10 years).

Copyright Photo: Alvaro Romero. The Dreamliner is pictured on display at FIDAE in Santiago, Chile

LAN shareholders approve merger with TAM

LAN Airlines (Santiago) announced that at an Extraordinary Shareholders Meeting held in Santiago, Chile, LAN shareholders approved the merger of LAN with Sister Holdco S.A. and Holdco II S.A., two special purpose companies created exclusively for purposes of this transaction, where shares of TAM S.A. will be held, directly or indirectly, prior to their consolidation into LAN. LAN will be the surviving entity, with an exchange ratio set at 0.9 LAN shares for each share of the absorbed companies, and will be renamed LATAM Airlines Group S.A., subject to (i) the terms and conditions of the binding contracts between both parties; and (ii) a final decision, on or before April 30, 2012, in the pending Reclamación before the Chilean Supreme Court that seeks the approval of the proposed business combination between LAN and TAM.

LAN shareholders approved the merger on the proposed conditions by a broad majority, with over 99.99% of shares present at the meeting. The shareholders meeting also approved a change to the Company’s corporate name, and other necessary transactions contemplated in the agreements between the parties.

This approval is an important milestone in the implementation of the merger proposal between LAN and TAM, which is expected to be concluded by the end of the first quarter 2012.

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


Brazil’s antitrust authority (CADE) approves merger between LAN and TAM in a unanimous vote

The Council for Economic Defense (CADE) yesterday (December 14) approved the merger between LAN Airlines (Santiago) and TAM Airlines (TAM Linhas Aereas) (Sao Paulo) in an unanimous vote.

This is the final regulatory hurdle for the merger into a new holding company.

Both airlines would continue operating separately with their own brands.

Read the full story from Bloomberg Businessweek: CLICK HERE