MercoPress. South Atlantic News Agency

LAN Airlines completes acquisition of second largest operator in Colombia

Aires founded in 1980 has a 22% of Colombia’s domestic market

Chile’s flag carrier, LAN Airlines announced Wednesday an agreement to acquire 98.942% of the outstanding shares of Colombian airline AIRES, through the purchase of its parent entities.

The acquisition price is 32.5 million US dollars, to be adjusted according to variations in AIRES' debt between the value at closing of the transaction and the value as stated in the company's financial statements as of August 31, 2010.

The estimated time frame in order to conclude the due diligence process and finalize the acquisition is between 30 and 60 days from the signing of this agreement.

AIRES is a Colombian airline founded in 1980 and is currently the second largest operator in the Colombian domestic market with a 22% market share. AIRES provides scheduled service to 27 domestic destinations within Colombia, as well as 3 international destinations. The company's fleet consists of 9 B737-700s, 11 Q200 and 4 Q400.

Once the acquisition occurs, AIRES would become an affiliate of LAN Airlines and each Company would comply with the foreign ownership and control regulations in each country where they operate.

If the combination with Brazilian airline TAM is successful, AIRES would become part of the new Latin American airline group, LATAM Airlines Group S.A.

LAN Airlines is one of the leading passenger and cargo airlines in Latin America. The company and its affiliates serve over 70 destinations around the world through an extensive network that offers full connectivity within Latin America, while also linking the region with North America, Europe and the South Pacific, as well as 70 additional international destinations through its various alliances.