MercoPress. South Atlantic News Agency

Lan Chile buys planes and targets Asia

Lan Chile will be incorporating seven new aircrafts in 2005 partly to renew its fleet and partly to address the growing business expansion.

Chile's official flag carrier also has affiliates in Peru, Ecuador and Dominican Republic and is involved in an aggressive plan to consolidate its leading position in Latinamerica as well as increasing passenger and cargo traffic to Europe, Oceania and Asia in support of expanding Chilean trade in those continents.

Lan currently has a fleet of 63 aircrafts, 56 passenger and seven cargo, after having incorporated eight new units during 2004 which contributed significantly to improve the company's finances.

During the first nine months of 2004, Lan managed earnings equivalent to 116 million US dollars, double the same period last year, following a strong improvement in passenger and cargo traffic as well as measures to curtail the impact of ballooning fuel costs.

Regarding passenger traffic, in 2005 three Boeing 767/300 will be leased plus two Airbus 319, which will be purchased and destined to replace ageing aircrafts. Two more Boeing 767/300 will be entirely involved in cargo, which now represents 38% of the company's revenue.

With the expansion of Chilean trade to China, Japan and South Korea Lan Chile is planning to fly to those markets. The closest Lan flies is Australia and New Zeland.

The idea is to have an air shuttle with Asia working with other regional airlines similar to the agreement reached last November with South Korean Airlines.