MercoPress. South Atlantic News Agency

Lan renews students' special fares.

For a third consecutive year Lan last week renewed the accord with the Grouping of Magallanes Families of Students which contemplates rebates and other travel benefits for local students who in higher education in other regions of Chile.

The accord in 2003 benefited over 400 students mostly with a 20% rebate on the cheapest fare and 10% in the following cheapest plus special cargo rates and 10 additional kilos of luggage per student.

Lan General Manager Pedro Pablo Errazuriz said the company was committed to "Magallanes Region and we support students, the regional hospital and even sponsor a local swimmer who we feel can make it to the Chilean national team".

As to the ongoing debate over fares Mr. Errazuriz invited to look back twenty years when it was "virtually unattainable".

"Those who wish cheaper fares can look into our website, but if they want us to keep the reservation until last moment, they have to pay additionally, that's the company's policy".

"The additional is equivalent to fares of sometime ago; the new system has allowed us to offer cheaper fares and above all enlarge the market, four times what is was twenty years ago".

Mr. Errauriz also pointed out the close link between the future of Magallanes and tourism.

"The high season has gradually extended and now begins in October, instead of December and last year there was a 6% increase which is encouraging but we must target an annual 10%".

Finally Lan General Manager described the beginning of Aerolíneas del Sur flights to Punta Arenas, as "positive for competition in a market with no competition", and which will help both companies "recover passengers".

Mr. Errauriz discarded any future "fares' war" with the new company since "overall the current level of fares will be remaining in the future"