MercoPress. South Atlantic News Agency

News from Punta Arenas

Headlines:
DAP Manager blasts Lan Chile; Rural tourism; Longing for the “Argentines”; New ferry;Negative inflation

DAP Manager blasts Lan Chile

Magallanes regional airline DAP manager Andrés Pivcevic accused Lan Chile of monopoly practices and double speech regarding air service to the extreme south of Chile.

Talking from Punta Arenas, Mr. Pivcevic whose airline that until a few years ago linked Punta Arenas with the Falkland Islands said that Lan Chile's Manager Pedro Pablo Errázuriz recent statement that the company "was interested in competition because this favors consumers", was sheer nonsense.

"Lan Chile is a perfect model of a monopoly that impedes the existence of competition; we just have to look at the Punta Arenas-Santiago air service market where they have systematically eliminated competitors and have not had second thoughts about appealing to illicit practices", stressed Mr. Pivcevic.

"This was clearly proved in Court when the DAP case", added Mr. Pivcevic.

A few years ago Lan Chile was found responsible of "monopolistic practices" regarding the Punta Arenas-Santiago air route by a civil court.

DAP's manager also refuted Mr. Errazuriz remarks that there are no access barriers to the Chilean air service market.

"The Lan consortium practically controls 100% of the Chilean market and also participates in different airport administrations through some of its subsidiaries", insisted Mr. Pivcevic, who said the group has become so powerful, not only eliminating direct air competition, but also "working with brutal methods to eliminate the activities of the travel agencies".

"This attitude is particularly irritating for extreme regions of the country, that given the distance and geographic conditions have no alternatives and are hostages of the situation".

Mr. Pivcevic appealed to Magallanes Region public opinion to complain to local authorities in Punta Arenas and in Santiago demanding air tariff regulation "to ensure a proper, viable and healthy competition".

"The media has helped in the past and can also help now; we must prevent Lan Chile from playing with Magallanes passengers particularly at this time of the year when student traffic is so important", concluded Mr. Pivcevic.

Rural tourism

Punta Arenas officials are promoting rural tourism locally and in the rest of Chile particularly making the shearing season one of the main attractions.

The site www.fantasticapatagoniarural.com, includes several options both for campers, visitors and tourists, including the Río Perez and Sendero Skyring camping; the estancias Los Coipos, Los Pozos, Parque Ñandú and the hostels Rio Petinente, Tres Pasos, Río Verde, Agroturismo Ayelén and Tunkelén nest to the Chapeau Hill.

Another popular option for mid term July holidays is the estancia Fitz Roy which not only offers visitors the chance to see farming activities, but also a museum and collection of 2,500 pieces related to cattle breeding in the last century and a half.

Visitors can ride horses; follow the shearing process; see an exhibition of gaucho skills and sheep rounding with dogs, plus an additional cruise in the Fitz Roy channel.

The local branch of the Chilean Institute of Agriculture Development, INDAP, is assessing the potential of other areas in Magallanes and Tierra del Fuego, some of them locations virtually unexplored by non residents such as Agua Fresca, Villa Tehuelches, San Gregorio, Dorotea and Laguna Blanca.

Actually in Villa Tehuelches and Laguna Blanca locals from the Mulato Cooperative annually organize a Shearing Festival, that so far this year has attracted 12,000 people according to INDAP.

Longing for the "Argentines"

Punta Arenas hostels are longing for the Argentines that once filled their accommodations and made the industry prosper.

According to the local association of hostels, "we've lost almost 30% of our trade because of the Argentine crisis, to which we must add all the Chileans that live and work in Argentine Patagonia and who for the same reason have limited their visits", explained Mr. Rodomiro Kuscevic.

In good times Argentines from as far as Comodoro Rivadavia regularly visited Punta Arenas for winter holidays or long weekends, "but that now belongs to the past".

Mr. Kuscevic says last year was particularly poor because Americans, following the September terrorist attacks, didn't show up, "although we managed to attract some more Europeans, French, German, Italian, but not enough".

However the Punta Arenas industry is determined not to give up.

Next July 25/27 the city will host the Patagonia Folklore Festival, and "we expect many visitors, who will come to enjoy the music and do some shopping".

New ferry

A brand new ferry to improve links with Argentina will be arriving in mid December to Punta Arenas. "Pionero" at a cost of 3,5 million US dollars is being built in Valdivia for Transbordadora Austral Broom a company that has been operating in the area for 35 years.

Manager Alejandro Kusanovic said the "Pionero" was commissioned to replace the ageing "Bahía Azul" that links with Punta Delgada the route most commonly used by Argentine cars and trucks heading for Punta Arenas.

"We are now operating ten, twelve crossings per day, and on special occasions we can have more, and that is the reason why we decided to order a new ferry with greater capacity and cheaper to run", said Mr. Kusanovic.

However Mr. Kusanovic admitted that since 80% of traffic is with Argentine vehicles, "actually in the last six months we've experienced a 30% drop".

"But we trust Argentina will recover, and we are looking ahead", added Mr. Kusanovic.

Another important improvement is the building of a ramp in Bahía Azul one of the landing points that should help avoid delays because of low tides.

"With low tides, sometimes we have to wait up to four hours to unload, but with the ramp as an extension of the jetty, we will be able to operate at all times with no impediments except for the bad weather", indicated the ferry company manager. Negative inflation The Consumer price index in Chile during June dropped 0,1%, bringing this year's six months inflation to 0,8% and 2% for the last twelve months according to latest report from the National Statistics Office.

The most significant drops happened in Clothing ( -0,4%), Transport (- 0,4%) and Others (-8%). Health and Food experienced milder decreases, - 0,2% and ? 0,1%, while Housing increased 0,1% and Education and Entertainment remained flat.

Fuel prices during June dropped 2% accumulating a 5,8% decrease in the last twelve months.

The Consumer Price Index excluding fresh vegetables and fuel (because they are mainly seasonal), also experienced a 0,1% drop in June with a twelve months variation of 2,7%. Fresh fruit and vegetables actually increased 1,4% in June with a total 3,8% in the last twelve months.