MercoPress. South Atlantic News Agency

Argentina and Colombia in Lan Chile's roadmap.

Argentina and Colombia's air markets are in Lan Chile's strategic expansion agenda, although there's no timetable for theses operations.

"We'd love to be active in Argentina. In Colombia Lan Chile has been invited but we're not moving in until markets are quieter", said Enrique Cueto, vice-president of Latinamerica's most successful airline.

Lan Chile last week reported profits equivalent to 25,4 million US dollars in the first half of 2003, a 233% increase over the same period a year ago.

A Chilean flag carrier release indicates that overseas associates, particularly in Peru, Ecuador and the Dominican Republic represented the most active profit making operations almost 75% of profits from a total turnover of 757 million US dollars.

"These positive results were achieved in a context of sustained fuel increases; the effects of the Iraq war and a persistent drop in domestic passenger air traffic".

"At the moment we're concentrating on overcoming the greatest crisis ever of the industry. We're holding tight. This year's challenge is to consolidate our operations in Peru and Ecuador", said Mr. Cueto. However Mr. Cueto admits Lan Chile's interest in the Argentine market given its importance regionally.

"Six years ago we almost had Aerolíneas Argentinas in our hands, but you've seen what happened to that country?", added Mr. Cueto.

Buenos Aires press reported last week that Lan Chile was interested in 49% of Lafta, an Argentine government airline created to absorb two bankrupt private airlines.

Mr. Cueto however insisted that "Argentina is still a very closed market and has regulatory problems, so there's time to assess conditions".

In Colombia the company's flag carrier Avianca is in liquidation process, and Lan Chile has been invited to take over. Avianca and its United States affiliate Avianca Inc are under chapter 11 protection while the company tries to reach an agreement with its creditors. Avianca total debts are 269 million US dollars. Last year the company lost 35 million US dollars.

"Actually we were offered Avianca six months ago, but we haven't talked about it", revealed Mr. Cueto.