MercoPress. South Atlantic News Agency

LAN allowed to operate in Ecuador's domestic market

Chile's LAN was granted a two-year concession to operate domestic flights in Ecuador, a top aviation official said on Thursday. The airline's Ecuadorean unit will be allowed to fly local routes to major cities like Guayaquil, Quito and Cuenca.

The company will also operate flights to top tourist destination the Galapagos Islands. "The concession is for two years" said Guillermo Bernal, head of Ecuador's national aviation council. "We want healthy competition in the local industry." Bernal said he didn't know how much the company plans to invest in Ecuador but added that LAN had expected its participation would help boost the overall country's air traffic by more than 20%. LAN recently announced it was reviewing its investment plans due to the global economy slowdown. However the Chilean carrier remains the most profitable Latinamerican carrier and has been chosen several years running as the best of the region in service and punctuality. Ecuador's busiest route between the cities of Quito and Guayaquil registered more than half a million passengers in 2006, according to aviation authority data. Local carriers opposed LAN's application to operate domestic flights, arguing unfair competition with the major airline, one of the region's largest air carriers.