MercoPress. South Atlantic News Agency

Lan Argentina begins flights to Ushuaia

Lan Chile's affiliate Lan Argentina, announced Friday in Mar del Plata the beginning of flights to Patagonia and Brazil as part of its regional expansion policy.

Ushuaia and El Calafate are the two Patagonian destinations Lan Argentina will be covering as of next week and in early December two daily flights to Sao Paulo, said Damian Scokin the company's General Manager during a business forum.

"We expect the market to keep growing so we can announce further investments", indicated Mr. Scokin adding that the company would end December with double the turnover of the beginning of the year, and in 2007 "we expect to grow at least 50%".

Since beginning operations in June 2005, Lan Argentina will have completed an "associated investment in the range of 500 million US dollars", said Pablo Querol the company's PR spokesperson.

The company has a fleet of four Airbus 320 and two Boeing 767 flying to nine Argentine cities plus a direct flight to Miami.

"Argentina's air market could grow enormously", said Querol but regulated prices are limiting "incentives for companies to open new routes".

Lan Argentina begun operating in Argentina after it acquired the small air carrier Aero 2000. Actually Lan holds a 49% stake and two Argentine solicitors 51% as required by Argentine legislation.

Following the melting of the Argentine economy 2001/02, in 2003 air traffic begun to pick up in line with the economy. Together with a relatively weak currency tourism has since become a leading industry in Argentina with a boom in air traffic.

However the main domestic airline in Argentina is Aerolineas Argentinas which belongs to the Spanish tourism group Marsans.