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Lan privileged passengers but will review investments and expects ‘common sense’ from Argentine officials

Monday, May 20th 2013 - 05:00 UTC
Full article 44 comments

Lan Chile admitted the company had to yield to the demands from the Argentine company Intercargo, which monopolizes ground services in all the country’s air terminals, so that they could resume normal traffic in Argentina. It also said that it was not leaving Argentine but would review future investments and expects more common sense from local authorities. Read full article

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  • cornelius

    The US and the EU warned companies doing business in Argentina to stay away from Argentina, Argentina is not a serious country the rule of law does not exist is one of the most corrupt governments in the world.

    May 20th, 2013 - 05:31 am - Link - Report abuse 0
  • toooldtodieyoung

    ”The situation we face with the Argentine company is extremely serious. We hade a contract and court decisions, and despite all the company ignored those orders, the contract and unilaterally cut the ground services which impeded us from operating”

    .......Just another day at the office in Argentina..............

    May 20th, 2013 - 06:04 am - Link - Report abuse 0
  • Anglotino

    Argentina can expect less investments and flights in the future from LATAM. Considering LATAM's profitability, network size and growth; it might miss Argentina but with higher growth in Peru and Colombia, it would be better to deepen and expand those networks. Perhaps get the Pacific Alliance to look at open skies amongst members.

    May 20th, 2013 - 06:05 am - Link - Report abuse 0
  • Think

    TWIMC

    Anybody failing to see the ”Malvinas Connection” in this minor contractual misunderstanding with LAN, has been drinking from the same bottle as Cheznye Emmons…..

    May 20th, 2013 - 06:57 am - Link - Report abuse 0
  • Conqueror

    Best thing for LATAM to do is to pull out of argieland. Just fly around it. It's not as though there are any good reasons to go there.

    May 20th, 2013 - 08:15 am - Link - Report abuse 0
  • redp0ll

    Quite simple Latam. Move your main hub from BA to Montevideo where contracts are respected and investments welcomed

    May 20th, 2013 - 09:25 am - Link - Report abuse 0
  • Think

    Turnip at (6)
    Brillant idea!
    I have another one..... nearly as good........:
    Quite simple BA. Move your main hub from London to Cardiff where the workforce is cheaper, they speak a nice language and the English are welcomed....

    May 20th, 2013 - 09:40 am - Link - Report abuse 0
  • Anglotino

    Huh?

    Poor Think is rambling.

    Can anyone work out what he is going on about?

    May 20th, 2013 - 09:46 am - Link - Report abuse 0
  • Think

    Huh?

    The platypussy is disoriented.

    Had same “Mojito” as Liam Davies, perhaps?

    May 20th, 2013 - 10:11 am - Link - Report abuse 0
  • yankeeboy

    A country run by thugs.

    It will take at least a generation before anyone is interested in investing there again.

    May 20th, 2013 - 10:25 am - Link - Report abuse 0
  • redp0ll

    @7 My dear old rambling manglewurzel. Yep Esquel might be a good alternative airport yo BA. They speak Welsh there too you know and dont much care for the English either
    Now Wurzel you are a canny fly fisherman in all senses of the word so please tie another one on your dropper as the fly you got on aint catching much fish lately. Apologies for the illusions to those who are not up on fishing nomenclature
    Yes Wurzel I did mean illusions of which you have many and not allusions

    May 20th, 2013 - 11:50 am - Link - Report abuse 0
  • andy65

    Somewhere along the line and hopefully very soon Argentina is going to get one mighty slap in the kisser

    May 20th, 2013 - 11:57 am - Link - Report abuse 0
  • ElaineB

    LAN put their passengers first. They have an enviable reputation in South America and are building a reputation world wide for quality, reliability and profitability. In the short-term they had no choice but to give in to blackmail, showing they value the comfort of their passengers over politics. In the long run they will have the last laugh.

    La Campora is running out of ready cash if they have to resort to such tactics. AR has always been a way to milk money out of the system to pay their minions.

    I remember being on a LAN flight from Santiago to Peru and sitting next to an Argentine chap in business class. He was a former pilot and spent most of the flight cautioning me against ever flying Aerolineas.

    May 20th, 2013 - 12:20 pm - Link - Report abuse 0
  • yankeeboy

    LAN should stop taking reservations and pull out of Arg altogether. Aerolineas couldn't handle the extra passengers and would quickly collapse the service.
    and I would laugh.

    May 20th, 2013 - 12:46 pm - Link - Report abuse 0
  • andy65

    @ElaineB either way are Lan not setting a terrible example by caving in to such blackmail and should the Chilean government be playing a part over this?? it seems there were no discussions to find common ground just a complete cave in to demands.

    May 20th, 2013 - 01:22 pm - Link - Report abuse 0
  • Welsh Wizard

    @15
    LAN were happy to cave in over this so that they meet their passengers expectations. They will just sit down and re-evaluate what they are going to do regarding their position with Argentina and whether they wish to remain. I suspect that they will remain but put in a get out contingency in case things get worse.

    May 20th, 2013 - 01:39 pm - Link - Report abuse 0
  • ElaineB

    @15 I think they chose the right option. Knee-jerk reactions are satisfying only in the short-term. They have a reputation to uphold and the passengers could not give a stuff about the reasons behind their delays. As LAN recognised, people wanted to get home to their families and put their needs first. I would expect this of any airline I was using if they wanted to keep my business in the long-term.

    Looking at the bigger picture, Argentine airports are being run by a bunch of thugs with no regard for the law or contracts. And Chile, like Brazil, Paraguay, Uruguay and others, know the Argentine economy is going to implode and CFK will be out of office. They are all sitting back and waiting for the inevitable.

    Sometimes you have to look long-term. LAN will have passengers world-wide when Argentines will not have the price of a bus ticket. They are taking care of the right people and taking a hit. If Timerman thinks he will get any favours from Chile after this he is much mistaken.

    May 20th, 2013 - 02:14 pm - Link - Report abuse 0
  • Conqueror

    @15 I agree. If they had 5,000 passengers they needed to move, together with baggage, refuelling, catering etc, it would have done nothing for customer satisfaction to hold out.

    But now they should go for an urgent review. Make sure that they have an appropriate hub in Brazil. In 2010, LAN and TAM said they had a combined fleet of 240 aircraft with 220 more on order. More than AR could even dream of. It has 37. So, new hub in Brazil. Ask Uruguay it it's interested. But I'm sure that LAN could maintain its commitment to the Falkland Islands whether it flies from Sao Paulo or Santiago. Then just close down LAN Argentina before argieland steals something else and pull out.

    Incidentally, if I were in Chile's position, I'd find a way to punish argieland. Find a suitable “joint” project and cancel Chilean involvement.

    May 20th, 2013 - 04:04 pm - Link - Report abuse 0
  • JamesS

    sadly its lacking amongst Argentine officials is common sense ! Anyone going to attend the 10 years of the Kirchnerismo this saturday ? nobody outside the circle are invited, ok then =)

    May 20th, 2013 - 04:11 pm - Link - Report abuse 0
  • andy65

    I agree with you all and Lan should be admired for putting passengers first but I do hope childish though it may sound they find a way of getting back at Argentina, no country should be allowed to hold another country's national airline to ransom.

    May 20th, 2013 - 04:41 pm - Link - Report abuse 0
  • ChrisR

    I think this might be the key to the whole matter:
    “Cueto revealed that the company has had contacts with President Cristina Fernandez and before her with president Nestor Kirchner and “they have always received their support and interest in having Lan Argentina and flying”.”

    If TMBOA is prepared / has the power to tell FatMax and the La Camping-it-up to cease and desist and obey the law - HANG ON A COTTON PICKING MINUTE, WTF AM I SAYING?

    It's The Dark Country so that's out!

    May 20th, 2013 - 05:27 pm - Link - Report abuse 0
  • British_Kirchnerist

    #21 I don't know what you are saying, actually. Surely “obeying the law” and taking industrial action is perfectly combatible, whatever your Thatcherite desire might be...

    May 20th, 2013 - 06:18 pm - Link - Report abuse 0
  • briton

    Perhaps you should leave Argentina…..

    Before Argentina leaves you ==in the lurch..
    .

    May 20th, 2013 - 06:33 pm - Link - Report abuse 0
  • Anbar

    “”#21 I don't know what you are saying, actually. Surely “obeying the law” and taking industrial action is perfectly combatible, whatever your Thatcherite desire might be...“”“

    Surely supporting industrial blackmail is idiotic, self-defeating and entirely against the rule of common law and sense.

    oh, hang on - it was BK posting... idiocy and necrophilia combined in one non-British package.

    ..and it happened in Argentina where the ”rule of law“ actually means ”What the haggard-whore CFK means today”.

    May 20th, 2013 - 06:40 pm - Link - Report abuse 0
  • Condorito

    4 Think
    Anyone failing to see that trashing their own domestic airline industry as part of a strategy to obtain the Falklands, is a lost a cause, is drinking from the same bottle as Ché Copete.

    13 Elaine
    In Argentina no one flies Aerolineas if there is an option.

    18 Conq
    We don’t need to punish them, they do that themselves. $18 million is a cheap price to remind those Chilean with short memories that Argentina cannot be relied upon.

    In General:
    This situation with our airlines highlights the divergence of our countries. 20 years ago Lan was a small domestic Chilean airline, fighting out local routes with Ladeco, whilst Aerolineas was the shaby Argentine national flag carrier. Today Lan is a regional giant and one of the most efficient airlines in the world whilst Aerolineas is a crumbling, shaby national flag carrier that loses $2 million a day.

    Kirchnerism (and Argentina with it) is lost. This extract from La Nación today sums it up perfectly:

    “El kirchnerismo es muchos kirchnerismos. O más bien, una construcción moldeada a lo largo de 10 años con las ruinas de sí mismo que va dejando a su paso. Un “modelo” que marchó a tientas en un presente continuo, ajustando el rumbo día tras día; que ante cada obstáculo recurrió a una carta de épicas, más inclinado a buscar enemigos que a negociar soluciones.”

    And here we have them, changing direction every day, looking for enemies rather than solutions with the sole aim of consolidating power.

    May 20th, 2013 - 07:00 pm - Link - Report abuse 0
  • andy65

    @Condorito Lan, is also part of ONEWORLD ALLIANCE but I see Aerolineas stands alone who in the right mind would want that in there alliance

    May 20th, 2013 - 07:43 pm - Link - Report abuse 0
  • ChrisR

    @22 BSK

    Which bit of breaking the law do you not understand?

    LAN has TWO judgements for them against La Camping-it-up to enforce the contract conditions, which THEY PROMPTLY IGNORED.

    Try doing that in the UK and you will be held in contempt and very likely jailed if you did not start operating in accordance with the judgement.

    Do you understand now?

    May 20th, 2013 - 09:25 pm - Link - Report abuse 0
  • Baxter

    As ElaineB says LAN , or Latam as it is now , did the right thing in looking after its passengers . However , in the long run , giving in to bullies does not bode well for the future . Can one have serious discussions with a Government whose followers disobey a court order ?

    May 20th, 2013 - 09:31 pm - Link - Report abuse 0
  • ElaineB

    @28 In the long run the bullies will not be in power. LAN will be around for a very long time.

    May 20th, 2013 - 10:14 pm - Link - Report abuse 0
  • agent999

    What is going to happen is that all LAN flights to Argentina are going to be more expensive . The passengers are going to pay more !

    May 20th, 2013 - 11:42 pm - Link - Report abuse 0
  • Ernie4001

    Fligths to BsAs. will be more expensive meaning less tourist to Argentina. At the end it will be better choose any other destination with the losses for argie tourism. The Argentiniams will have to fly in Air rubbish or Lan paying more. Sad, but they chose that government and it´s corruption.

    May 21st, 2013 - 12:29 am - Link - Report abuse 0
  • Baxter

    29 Elaine B. unfortunately dictators tend to survive ! It is true that Hitler and Mussolini did not last so long but the Castros in Cuba ? And one has an idea that Messrs. Morales , Correa , Maduro and Kirchner will follow that trend .

    May 21st, 2013 - 02:24 am - Link - Report abuse 0
  • British_Kirchnerist

    #19 Wish I was there! Here's to the next 10 years =)

    May 21st, 2013 - 09:23 am - Link - Report abuse 0
  • Troy Tempest

    33BK

    I'm sure you will be there.

    I doubt that you were ever 'here'.

    May 21st, 2013 - 03:24 pm - Link - Report abuse 0
  • Simon68

    I think we should all be taking into account what LAN stands for:

    Líneas Aéreas Nacionales (de Chile), and the Chileans are extremely patriotic, so if I were a La Comporista involved in Intercago, I would now be looking over my shoulder and praying that I didn't come up on Chilean radar!!!!!!!

    May 21st, 2013 - 03:30 pm - Link - Report abuse 0
  • ChrisR

    35 Simon68

    Bullies in the La Camping-It-Up mould think they are invincible until someone comes quietly up behind them, does a sweep to knock them off their feet and then stamps on their nuts.

    As the outfit is run by a woman the final action can be altered to on her throat. At least that would stop the cow from yacking on and on and on!

    LOLs

    May 21st, 2013 - 06:15 pm - Link - Report abuse 0
  • British_Kirchnerist

    #36 “As the outfit is run by a woman the final action can be altered to on her throat”

    Not only sexist, but incomprehensible gibberish...

    May 21st, 2013 - 10:21 pm - Link - Report abuse 0
  • ManRod

    Aerolineas (nothing else is Intercargo) defying LAN ???
    They might impose their dirty games in lawless Argentina, but there have been some airlines in the region that tried to defy LAN and it went all terribly wrong (Aero Continente, now broke and it's founder in Jail).

    Aerolineas, watch out on your international routes, they are gonna squeeze you out even more, especially on your routes via Brazil, which is now majorily owned by LAN via TAM.

    May 21st, 2013 - 10:57 pm - Link - Report abuse 0
  • cornelius

    ”La Campora is behind this issue Argentina's path to ruin”

    May 22nd, 2013 - 02:01 am - Link - Report abuse 0
  • Anglotino

    Argentinians are behind Argentina's path to ruin.

    May 22nd, 2013 - 04:12 am - Link - Report abuse 0
  • Troy Tempest

    @40

    Dammit, Anglotino!!

    That's a bald-faced truth!!!

    Someone's going to be offended.

    May 22nd, 2013 - 05:24 am - Link - Report abuse 0
  • Anglotino

    Troy

    You made me laugh out loud on the tram. Everyone is looking and wondering what the hell is so funny on my phone.

    Argentina might not export much beef but boy it exports mirth!

    May 22nd, 2013 - 07:37 am - Link - Report abuse 0
  • Troy Tempest

    42

    Anglotino

    They ARE a funny bunch.

    One wonders, what are they producing, if they can no longer market their exported beef in the gourmet niche that commands top $$ for 'the very best'?
    Other producers seem to be preferred over Argentine beef now.

    And the average domestic consumer does not seem to have access to the “better cuts”.
    Perhaps it's a 'rare' commodity (pun intended) ???

    As they export less and less, the industry is collapsing, and they are losing their capacity to produce, as well.

    Reminds me of the old US advertising campaign for a hamburger chain, famous catch phrase,

    “Where's the beef ???”

    May 22nd, 2013 - 11:55 am - Link - Report abuse 0
  • Pete Bog

    “we were expecting a little bit more of common sense” from Argentine authorities ”

    You can always hope, but you might have a long wait, especially as they are supposed to be your 'friends.'

    May 23rd, 2013 - 04:13 pm - Link - Report abuse 0

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