South America braces for more LCC competition
Tags :
Route Changes & Development,
LAN Airlines
LAN announced plans to introduce a low cost model for domestic services in Peru, Chile and Argentina, reducing fares by up to 30% on short-haul routes and deploying new A320 family aircraft on the routes
In Oct-05, the carrier ordered 25 A320 family aircraft, as well as securing 15 additional purchase options, for delivery from early 2007, including 20 A318s in the order. The aircraft will be deployed on LAN’s three country domestic network, replacing B737-200 equipment. By 2008, LAN will invest approximately USD1 billion on 32 new A320 family aircraft.
In 2006, LAN handled 8.8 million passengers. Domestic operations accounted for 2.5 million of LAN’s total passengers, and rose just 1.6% year-on-year. With its new two-tier model, the carrier is targeting a 50% increase in traffic within two years, aiming at stimulating domestic and short-haul regional operations.
The low-cost model was tested by LAN on three routes in Chile, as well as in routes in Peru in late 2006 and early 2007. The carrier, which has a majority market share in both countries, also plans to introduce the low-cost model on its routes in Argentina.
LAN is aiming...
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Date posted: 16-Mar-07
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South America braces for more LCC competition 
