MercoPress. South Atlantic News Agency

Lan Chile fined for breach of fares plan

Lan Chile was finally fined the equivalent of 52,000 US dollars (30 million Chilean Pesos) for breach of the self regulating plan for domestic flights fares which became effective in 1995 when the company absorbed Ladeco, the second largest Chilean air carrier.

So it was decided by the Anti-monopolies Resolution Committee. The Anti-monopoly prosecutor Pedro Mattar Porcile proposed the full fine for cases of this nature equivalent to 300 million pesos, over half a million dollars.

In its ruling the Resolution Committee established that Lan Chile and Lan Express self regulating fares plan failings were exceptional and minor, and they could not be described as positively intentional for the purpose of deliberately infringing the plan.

However Prosecutor Mattar Porcile had argued that Lan Chile with no justification at all openly breached the self regulating fares system which clearly indicates that in those domestic lines, with no competition, (such as those to Punta Arenas), the company can't charge fares above those where competition does exist.

This means that Lan Chile is banned from charging in non competitive routes, an average monthly fare, per kilometre, above those where competition exists.

The Antimonopoly Prosecutor after assessing 524 groups of domestic routes which correspond to the period extending from January 1998 to February 2003, proved that Lan Chile "with no justification at all did not comply with the self regulating fares plan in 47 cases, equivalent to 9% of the total".

According to the Santiago press, Lan Chile will not be appealing to the Supreme Court.