MercoPress. South Atlantic News Agency

Lan Chile's “monopolistic practices” in the limelight.

The Chilean National Airnavigation Association, ANACO, accused Lan Chile of “monopolistic practices” that impede the development of smaller airlines.

Invited to the Lower House Transport Committee, Anaco president Gonzalo Parraguez said it was most unfortunate that a company such as Lan Chile impedes smaller air companies from competing emphasizing "we're facing a great competitor that can resist any drop in fares and literally destroy weaker companies. This has been Lan Chile's common practice for the last few years".

Anaco represents companies linked to the air industry such as air taxis, charters, flying schools, spares suppliers, maintenance workshops.

However Mr. Parraguez admitted that the organization has no concrete proposal to face the problem, but "it's essential to have greater and more transparent competition".

Anaco vice-president Andrés Pivcevic from LAM, (Magallanes Air Lines) operating from Punta Arenas recalled that in 1997 a family company DAP, was forced out of the Santiago-Punta Arenas market by Lan Chile's dominant policy of extremely low fares.

"We had to return the leased Boeing and now we are limited to air links with Argentine Patagonia, Antarctic trips and helicopters that supply and service oil rigs in the Magellan Strait area", said Mr. Pivcevic.

Lan Chile representatives have been called on several occasions to testify before the Chilean Congress Extreme Areas Special Committee but have managed so far to prove that the company is not involved in "monopolistic practices".

The dispute has also reached the Chilean Anti Monopoly Committee and the Economic Prosecutor's Office.