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Montevideo, April 19th 2024 - 03:57 UTC

 

 

Lan Chile's fares are “abusive”.

Wednesday, May 21st 2003 - 21:00 UTC
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Two Chilean Deputies have described Lan Chile's fare policy as “extremely abusive” and anticipated they will request the country's Economic Prosecutor to fix fares in all those domestic routes where the Chilean carrier has no competition, plus a reduction in the number of price options offered by the company where there's competition.

Deputies Zarko Luksic and Eduardo Saffirio who have repeatedly accused Lan Chile of discriminatory and monopolistic policies, made the announcement after receiving a report from the Chilean Consumer Services Office with the different prices and evolution of fares in all domestic routes.

The report indicates that Lan Chile and Lan Express (cargo) dominate 80% of all domestic flights and in "some cases, as Punta Arenas, 100%, since they are the only carrier".

Mr. Luksic who is member of the congressional Extreme Areas Committee also claimed that Lan Chile has a package of over 18 different fare programs, quiet complex with price differences of up to 91% with Sky airlines, the only other Chilean domestic carrier.

In other destinations without competition such a Punta Arenas, Valdivia, Osorno, El Salvalor, La Serena "prices are extremely high and clearly abusive", indicated Mr. Luksic.

For example the cheapest return ticket to Punta Arenas costs 105,000 Chilean pesos (approx. 150 US dollars), "but it's extremely hard to obtain and is seriously conditioned to restrictions such a minimum stay in the city, previous purchase, availability, can't be changed and is not refundable".

However the dearest Punta Arenas fare costs the equivalent of 550 US dollars, and has no restrictions, or conditions or strings tied to it, but "it's four times the economic fare and almost equivalent as travelling to Miami or Cancún in Mexico, and much more expensive than flying to Rio do Janeiro", explained Mr. Luksic who remarked "it's all a joke and an insult" to Punta Arenas travelers.

Mr. Luksic is a Christian Democrat Deputy for Magallanes Region.

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