MercoPress. South Atlantic News Agency

Aerolineas flies the flag and cautions Lan Chile

“We expect Lan Chile to be fully committed to Argentina and not consider the country as simply another market”, cautioned Aerolineas Argentinas CEO Antonio Mata who drastically marked the competing rules for the incoming airline during an interview with the Buenos Aires press.

Playing the nationalistic chord, Mr. Mata warned that Lan Chile is not necessarily committed to the country where it has operations, "as happened with the recent incident in Peru", (involving associate Lan Peru), and keep in mind "they refer to the Malvinas as the Falkland Islands".

"The difference between them (Lan Chile) as us is the commitment to the country, we consider Argentina our homeland, for them it's another market; but we expect they adapt to Argentina and comply with the social role (non profitable lines) they must play", underlined Mr. Mata.

However Mr. Mata admitted that the presence of Lan Chile operating in Argentina, beginning next June, is good for competition and for the air commercial industry.

"We want Lan Chile to come but flying to all destinations, contracting Argentine staff, paying Argentine taxes and showing the social commitment we have with the country", said Mr. Mata adding that Lan will fill a vacuum left by other companies in the Argentine domestic market.

"We're not concerned with Lan's competition, it's good for travellers and for us, even when air fares are regulated by the government. But we believe that given their turnover and expectations they will need several good years before they achieve their goals".

Mr. Mata also warned that there's quite a distance between targets and reality and "we're not going to remain put; we'll see if they can reach them. They could loose so much money that their shares could collapse and with the aircrafts they are planning to bring, I doubt they can achieve goals unless they also carry passengers on the wings".

Further on Mr. Mata talked of the "feeling" with which companies make business in a country as is the case with Aerolineas, "55 years at the service of Argentina".

"If we had planned not to serve Argentina we would have only concentrated in the most profitable lines, and this is important at the moment of making decisions, Aerolineas results and taxes remain in Argentina, Lan Chile's go to Chile; it's obvious associates transfer their earnings to headquarters. When your objective is making the most out of a market, there's no commitment with the country", highlighted Mr. Mata.

As part of Aerolineas commitment with Argentina, Mr. Mata announced that beginning next July they will be flying twice weekly to Beijing and Shanghai, via Madrid, with extensions to Tokyo and Bangkok further in the near future.

"We plan to take advantage of the growing business traffic with the Far East and the incipient tourist current to Argentina; we want to bring Chinese tourists".

Mr. Mata also mentioned the investment of 200 million US dollars in twelve four/five stars hotels in Argentina's best tourism spots, out of Buenos Aires, which will enable the Argentine flag carrier to promote full travel and hotel packages.

Finally Mr. Mata talked about the Aerolineas Peru project, a ten million operation with Peruvian investors with the objective of making it the official Peruvian flag carrier.

Having an associate in Peru is part of Aerolineas regional strategy to compete in all markets against Lan Chile, Latinamerica most profitable airline.

Lan Peru, a Lan associate which virtually dominates the Peruvian domestic market faces strong public opinion opposition in the country after airing in its aircrafts a video depicting (inavertedly) poverty, ignorance and filth in Lima the country's capital.