MercoPress. South Atlantic News Agency

Lan Chile's “monopoly” questioned again.

Chilean Deputy Zarko Luksic, president of the Congressional Public Works and Transport Committee said he was concerned with all the information provided by representatives of Aerolíneas del Sur, Chile, who claim they face growing impediments to operate in the country.

The company is registered in Chile but its main capital share belongs to the Spanish tourism group Marsans which also has a dominating position in Aerolíenas Argentinas.

According to Deputy Luksic, who represents Magallanes Region, Aerolineas del Sur complained before the Committee about the excessive delay and continuous request of new paperwork from the Chilean Civil Aviation Agency which depends from Public Works and Transport.

Deputy Luksic said he favours granting new companies that wish to begin developing air services in Chile all the needed support so as "to finish with the existent monopoly in Chile, the monopoly of Lan Chile that controls 80% of the passenger market and 100% of the cargo market in Chile".

"Consumers have no choice currently and the situation become even more complicated following the recent announcement of an air fares rise, allegedly because of oil costs", highlighted Mr. Luksic.

Following all the documentation and reports received from Aerolineas del Sur, Deputy Luksic said he had decided to invite to the Committee the Public Works and Transport Minister, the Managing Director of the Civil Aviation Agency and the Minister of Economy, with the purpose of talking about the delicate issue.

Aerolineas del Sur has plans to begin flying to extreme areas of Chile, Antofagasta and Iquique in the north, and Puerto Montt and Punta Arenas in the south. From then on it plans to extend to the rest of Chile hoping to capture 20/25% of the domestic market.