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Regional News.

Wednesday, May 14th 2003 - 21:00 UTC
Full article

Headlines:
Lan Chile's fares in the spotlight;
Increase in Chilean meat exports;
ARA Irizar ends Antarctic season.

Lan Chile's fares in the spotlight In an emphatic public statement released this week Lan Chile stressed its domestic and international competitiveness, which have consistently "benefited passenger fares" recalling that a report from the (Chilean) Economic Prosecutor's Office indicates that the average ticket price for the Santiago-Magallanes route remained unchanged between 1998 and 2002. Lan Chile's release follows a request to the Economic Prosecutor's Office from two Socialist Deputies demanding stricter measures to prevent Lan Chile from applying "crossed subsidies" between cargo and passenger fares, plus a more active participation in the Chilean flag carrier fare policy in those routes where it has a "monopolistic situation" such as in flights to Magallanes. "In some routes, such as Magallanes, where there's no alternative means of transport but air, and where there are solid supportive arguments, fares as an exception could be fixed without damaging the general principle of free market fares currently existent in the country", argued Deputies Francisco Encina and Pedro Muñóz. In its release Lan Chile replies that contrary to the legislators statements, "other airlines such as DAP, claim our fares are so low that they impede them from competing", adding that "pretending to have fixed fares, as has been requested by DAP and the honorable Deputies, will only privilege private interests of companies searching to protect their inefficiencies, trespassing basic free competition rules and consumers' rights". Chilean legislators also request a "strict monitoring" of Lan Chile's self regulation mechanism regarding proportionality between fares and distances; external auditing to control ticket availability, particularly promotion packages; the company's compensation policy when flights are cancelled for other reasons than climatic conditions and an inquiry into Lan Chile's interests in the management of air terminals, "that limit the access of new operators in the domestic air transport market". Lan Chile insists that the domestic air transport inquiry requested by the Attorney General is still in process and will therefore make no comments. However, Lan Chile will maintain its commitment to the domestic market, ensuring the highest standards of safety and service that characterize the company. Lan Chile concludes saying that its "modern fleet, convenient itinerary and competitive fares are the best evidence of a model that has given priority to the interests of all its passengers, and makes us proud and admired both nationally and internationally".

Increase in Chilean meat exports

Chilean meat exports during the first quarter reached 47 million US dollars a 20% increase over the same period a year ago according to the latest release from the Agriculture Policies Office. The volume of exports also jumped from 19,774 tons to 22,905 tons. Beef exports outperformed all other items with a sales increase in US dollars of 1,300% and 1,070% in volume with 2,623 tons. Lamb and mutton sales in the first quarter of 2003 reached 6,2 million US dollars, a 67% increase, and 1,964 tons, 36%. Pork shipments expanded 35% reaching 13,189 tons and 31,9 million US dollars, a 29% increase. Poultry sales on the other hand dropped 57% from 6,854 to 2.943 tons. Last year Chile experienced several outbreaks of poultry diseases that banned sales in overseas markets. The main markets in Q 1 were Japan 44%; South Korea 13%; Israel 9%; Mexico 9%; Spain 4% and Cuba 3%.

ARA Irizar ends Antarctic season

After ninety days in Antarctica Argentine icebreaker ARA Almirante Irizar returned to Ushuaia carrying more than 160 people including scientists and military staff putting an end to the current 2002/2003 season. The icebreaker whose main task is logistic support and supplying the six Argentine bases in Antarctica is scheduled to leave for Buenos Aires this week. This year's Antarctic season for ARA Irizar began in February and again in early April when she returned to Ushuaia to load supplies and fuel from the logistic vessel "Patagonia". A total of 800 staff were transported during these summer months by the icebreaker that called at the Argentine bases and stations of Primavera, San Martín, Jubany, Esperanza, Orcadas, Brown, Decepción and Cámara.

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