MercoPress. South Atlantic News Agency

Lan Argentina will fly to all domestic destinations

Lan Argentina formally requested all the air routes that the Argentine government was insistent the new operator had to cover --whether they were profitable or not--, putting an end to several weeks of controversy.

The Argentine government highlighted that this was part of the agreement to allow Lan Chile to begin operations in Argentina with local associates.

However, the authorizations to fly to all requested destinations do not apply automatically. Among them are Santiago del Estero, Jujuy, Parana, Reconquista, Concordia, Corrientes, Formosa, Chapelco, Esquel, Villa Gesell, Comodoro Rivadavia, Santa Rosa, Bahía Blanca, Puerto Madryn, Viedman, Rio Grande, La Rioja, Catamarca, San Luis, San Rafael, Malargue, Rio Cuarto and San Juan.

Two weeks ago when Argentine authorities heard about Lan Argentina's intentions of flying only profitable routes, they called the company's management to remind them of the original verbal agreement, according to the Argentine press.

Lan market's attitude caused great concern in the Argentine government because Spanish owned Aerolíneas Argentina threatened to leave the country if the Chilean competitor was not made to fly to all destinations.

Lan Argentina had argued that in a free market "business decisions must not be interfered by government".

"With the (Argentine) government we have no routes agreement because we're a private company; you can't ask private companies to take on social subsidies", Lan Argentina officials said during a press interview. "Rather than making it compulsory, the government should give incentives to fly to those destinations; but why should we, if other Argentine companies don't".

But the strong reaction from Aerolineas Argentinas and the Argentine government apparently have convinced Lan Argentina to fly to those (non profitable) destinations even if there are no incentives.

Lan Argentina is scheduled to begin operations next June 8.