MercoPress. South Atlantic News Agency

Lan Chile purchases Argentine airline.

Lan Chile reported Monday that it had agreed conditions for the acquisition of Aero 2000 in Argentina, which will enable the Chilean flag carrier to consolidate operations in South America.

Lan already has affiliates in Ecuador, Peru and Dominican Republic making it possibly the most successful and profitable South American airline.

In an official letter Lan indicated it "has agreed conditions for the buying option, together with local (Argentine) investors of the Argentine airline Aero 2000, currently with no relevant operations".

In the new company Lan would have 49% of the package and the rest will be in the hands of local Argentine partners.

Lan which had record earnings of 164 million US dollars in 2004, estimated the takeover operation could be materialized in thirty days time.

During the last weeks insistent rumours indicated Lan allegedly was interested in Lafsa and Aerovip, two Argentine airlines almost bankrupt, but one of the conditions for their acquisition was taking over all the staff.

Another company originally targeted by Lan was Southern Winds, also in serious financial problems, which is currently involved in an international drug trafficking scandal.