MercoPress. South Atlantic News Agency

Lan Argentina begins operations flying to Mendoza

Lan Chile made true a long standing ambition this Wednesday morning when its recently created Argentine subsidiary began operations with a 1,100 kilometres flight from Buenos Aires to Mendoza carrying 68 passengers.

"Today is a very important event for our company and we are most grateful to those passengers who have decided to fly with us", said Paul Petrelli, Aero 2000- Lan General Manager adding that "it's our commitment with Argentina to offer a world class service with the highest safety and quality standards".

Another flight was scheduled for late afternoon from Buenos Aires to Cordoba and next June 17 the airline will begin regular flights to Bariloche, one of Argentine Patagonia main tourism resorts.

By next July Aero 2000-Lan is planning to have a fleet of six Boeing 737/200 which will enable it to fly to other destinations such as Neuquen and Puerto Iguazú. Airbus 320 will be gradually introduced in the coming twelve months.

The company belongs 51% to local Argentine investors and 49% to Lan Chile, and has plans to operate seven domestic routes and overseas to Santiago and Miami in 2005 and Montevideo, Madrid, and Sao Paulo next year.

The company forecasts it will transport 500,000 passengers this year, with gross sales of 49 million US dollars rising to 1,8 million in 2006 and sales of 260 million US dollars.

Aerolíneas Argentinas which dominates the country's domestic flights and is owned mostly by Spanish investors, welcomed the irruption of the strong competitor with full page ads in Buenos Aires main dailies saying, "Welcome to fly with us".

However this first day of operations did not occur unnoticed. Boarding passengers suffered some inconveniences when dozens of unemployed airline workers protested sitting on the floor surrounding Aero 2000-Lan desks in Buenos Aires domestic airport.

As part of the deal to operate in the Argentine market Lan Chile had to accept the contracting of 650 staff from LAFSA, Lineas Aereas Federales S.A., created by the Argentine government in 2003 to absorb two bankrupt airlines that ceased flying because of financial problems, Lapa and Dinar.

Lafsa never managed to have an aircraft or fly under its name and simply operated in association with Southern Winds until last March when staff from this company and Ezeiza airport security personnel were caught red handed in a massive drug smuggling ring to Spain.

Some 800 former staff is involved plus another 150 from a smaller airline, Aerovip, that also went broke last October. Apparently Aero-2000 Lan agreed to absorb 650/800 employees and those who didn't accept contract conditions are now protesting.

"We demand the immediate incorporation of all staff and begin working as soon as possible", said the union's delegate Gaston Laigle.

"We don't agree with the way this company operates and we insist with the immediate contracting of all the personnel as was agreed originally", added Mr. Laigle.