MercoPress. South Atlantic News Agency

Lan Chile obsessed with Argentine market.

“It seems they are afraid of us”, said this weekend Lan Chile's vicepresident Enrique Cueto in direct reference to Aerolíneas Argentina that supposedly so far has been successful in impeding the Chilean flag carrier from having access to the lucrative Argentine air market.

"But we will continue trying, in spite of it being a much closed market", added Mr. Cueto.

"It seems Aerolíneas don't want us in or they fear us", claimed Mr. Cueto given the growing obstacles to the Chilean airline attempts to set up an affiliate such as Lan Peru.

Mr. Cueto revealed that negotiations to acquire a bankrupt Argentine airline American Falcon fell through, "because according to the press in Buenos Aires, Aerolíneas loaned them the money they needed".

Further on Mr. Cueto said Lan has been trying to have access to the Argentine market for over five years and "we've been looking at all companies. It's a closed country; you simply can't go into Argentina and set up your own company".

"We're targeting two, three companies which are in financial distress, but if that doesn't work we'll find some other way. It's a slow process".

Lan announced last week the international sale of 10% of its shares, an operation with the purpose of increasing liquidity for Chile's flag carrier and Latinamerica's most successful airline.