MercoPress. South Atlantic News Agency

Latin-Amercia News. Air Rates expected to fall.

Chilean operators believe air rates will fall and remain at low prices for some time to come because of the very slow recovery in air travel as a consequence of the terrorist attacks in United States. Even in Chile air travel demand has dropped 30% forcing the country's main carrier Lan Chile to cut flights 10% and staff an estimated 5%. Lan Chile is considered one of the best managed carriers in Latin America. Originally fares were expected to increase because of higher aircraft insurance costs. For example in Chile boarding passengers now must pay an additional 10 US dollars and in Mexico 5 US dollars to cover the extra cost. However the aggressiveness of US carriers that have slashed fares will force the whole market in that direction forecasted Ernesto Byrne, president of Chilean airlines association. "If fares are cheaper from the US, passengers have them purchased there, and this will oblige us to compete", said Mr. Byrne. Leo Mullin from Delta Airlines is preparing a 10,000 promotional tickets to New York at bottom rock prices. In the US for example to fly from Chicago to Phonix now costs 187 dollars compared to 336 before the terrorist attacks. Seattle-Florida return now can be purchased at 148 dollars, which means a 60% drop.

Chile lifts ban to Uruguayan beef

Chile announced the lifting of the ban to Uruguayan beef which was standing since last April when an outbreak of foot and mouth disease was reported in most Mercosur countries. The expected announcement was made in Santiago during an official visit of Uruguayan president Jorge Batlle to Chile where he's heading a numerous delegation of government officials and businessmen. Chile together with Israel and the European Union are among Uruguay's main beef and lamb clients. Last year sales to Chile reached almost 12 million US dollars, however in 2001 they dropped to less than four million. Uruguay is interested in promoting Chilean investments in forestry and the cellulose industry besides increasing sales of dairy produce and rice.

Chile joins Mercosur task group

Chilean president Ricardo Lagos confirmed his country's full participation in Mercosur's Permanent Task Group, a special intellig