MercoPress. South Atlantic News Agency

New airline begins flights to Punta Arenas in December.

Chilean Civil Aviation Council unanimously decided this Wednesday to authorize Aerolíneas del Sur (Aerolíneas Austral Chile S.A.) to operate in the Chilean domestic and international air markets as a Chilean company.

Aerolíneas del Sur with a fleet of four Boeing 737/200 and a Jumbo 747 joins the two other outstanding air carriers operating in the country, Lan Chile and Sky Airlines.

Congressman Zarko Luksic, who is also president of the Lower House Public Works and Transport Committee and has insistently pushed for more competition in the Chilean domestic air passenger and cargo markets said Aerolíneas del Sur plans to begin operations next December 6.

"The company's General Manager, Gustavo Mans, has informed us that the first flights will be non stop Santiago/Punta Arenas, twice a day and with cheaper fares than those from the dominant (Lan Chile) company", indicated Mr. Luksic.

On granting the authorization the Chilean Civil Aviation Council argued that the "real and effective" seat of Aerolíneas del Sur is Chile which, besides the fact that the company was founded in Chile, share holding associates are also Chilean, a majority of its staff is Chilean, all aircrafts are registered in Chile and flights begin and end in Chile, "legally qualifies it as a Chilean company".

Following the decision Public Works, Telecommunications and Transport minister Javier Etcheberry said that the incorporation of Aerolíneas del Sur not only complies with all legal requirements but is part of Chile's "open skies" policy which the Chilean government is promoting in the region "so Chilean air carriers can have similar opportunities".

Bernardo Dominguez, chair of the Civil Aviation Council pointed out that the "agency has worked and will continue to work with the purpose of achieving commercial air transport integration, particularly with neighbouring countries. South American skies can easily become an only market boosting the industry and our airlines".

Aerolíneas del Sur, (Aerolíneas Austral Chile S.A.) actually belongs to the Spanish tourism group Marsans which has a majority share in Aerolíneas Argentinas.

Congressman Luksic finally stated that "this decision plus the beginning of Sky Airlines flights next December 15 puts an end to Lan's monopoly particularly to places such as Punta Arenas; Lan controls 80% of all domestic passenger traffic and almost 100% of cargo traffic".