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Business Review’s Lan Airlines S.A. contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.
Lan Airlines S.A. _________________________________________________________________________________ Lan Airlines S.A.: SWOT Analysis & Company Profile Reference code: BRTT045CP10-Q4 Published: January 2010 Business Review John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) 20 7936 6400 Fax: +44 (0) 20 7336 6813 ___________________________________________________________________________________________ Lan Airlines S.A. - SWOT Profile Page 1 Lan Airlines S.A. __________________________________________________________________________________________ Lan Airlines S.A. - Company Overview LAN Airlines S.A. (LAN Airlines) is one of the world’s leading passenger airlines based in Chile. The company is principally engaged in offering domestic and international passenger services to its customers in Argentina, Chile, Peru, and Ecuador. In addition, it acts as one of the leading air cargo operators in the region. The company operates its business through single reportable segment, Transportation. As of February 28, 2010, the company serviced 61 destinations in various Latin American countries including Caribbean, Chile, Peru, Argentina, and Ecuador, among others. Also, it had four destinations in the South Pacific, three destinations in the US, two destinations in Europe, and one destination in Canada. The company transports over 15 million passengers and 650,000 tons of cargo every year. LAN Airlines is headquartered in Santiago de Chile, Chile. Financial Performance The company reported revenue of US$3519.16 million during the fiscal year ended 2009. The company's revenue declined at a compounded rate of 0.08% during the period 2007-2009 with an annual decline of 15% over fiscal year 2008. During the fiscal year 2009, its operating margin was 12.9% as against the operating margin of 15.43% in fiscal year 2008. During the fiscal year 2009, the company registered a net margin of 6.57% as against the net margin of 8.13% in the fiscal year 2008. Lan Airlines S.A. - Key Facts Lan Airlines S.A., Key Facts Avenida Americo Vespucio 901, Ticker Symbol, Stock Corporate Address: Santiago de Chile, , , Chile LAN (Santiago Stock Exchange) Exchange Telephone + 56 2 5653944 No. of Employees 17,679 Fax N/A Financial Year End December URL www.lan.comen_usindex.html Revenue (in USD Million) 3,519.16 Industry Transport and Logistics Australia, China, Japan, Republic of Korea, Austria, Belgium, Germany, Italy, Netherlands, Portugal, Locations Spain, Switzerland, Ukraine, United Kingdom, Canada, United States, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Mexico, Panama, Paraguay, Venezuela Source: Annual Report, Company Website, Primary and Secondary Research ___________________________________________________________________________________________ Lan Airlines S.A. - SWOT Profile Page 2 Lan Airlines S.A. __________________________________________________________________________________________ Lan Airlines S.A. - Business Description LAN Airlines S.A. (LAN Airlines) is a leading provider of domestic and international passenger services. The company is engaged in aviation industry. It principally offers passenger airline and cargo services in Latin America countries through LAN Airlines, Lan Express, Lan Cargo, Lan Peru, Lan Ecuador and Lan Argentina. As of February 28, 2010, LAN Airlines operated a fleet of 86 passenger aircraft, 96 jet aircraft and 11 cargo aircraft. The company classified its business operations under single segment, Transportation. As of December 31, 2009, the company employed 16,844 people. LAN Airlines has divided its business under two reportable divisions, namely, Passengers and Cargo. Under Passenger division, the company provides passenger transportation services both at domestic and international destinations such as Latin America, Auckland, Frankfurt, Los Angeles, Madrid, Miami, New York, Papeete (Tahiti) and Sydney through its airlines in Peru, Ecuador, Chile, and Argentina. As of February 28, 2010, the company offered its services to 15 destinations in Chile, 17 destinations in other Latin American countries, 13 destinations in Argentina, 14 destinations in Peru, three destinations in Ecuador, and the Caribbean, three destinations in the US, one destination in Canada, two destinations in Europe and four destinations in the South Pacific. The company uses both direct and indirect channel sales. It operates its direct sales through own ticket offices, call-centers and website. Its indirect channel distribution consists of travel agents using Global Distribution Systems. During the fiscal 2009, the company generated 74.6% of total revenues from its Passenger division. The Cargo division of the company offers cargo service to all its passenger destinations and to 16 additional destinations served only by freighter aircraft. It transports cargo through passenger aircrafts, freighter fleet, and purchased space from other airlines and through the ACMI contracts (Aircraft, Crew, Maintenance and Insurance). It serves a range of customers including international air carriers, freight-forwarding companies, export oriented companies and individual consumers. It deals with the operations through its affiliated companies such as MasAir in Mexico, and Absa in Brazil. During the fiscal year 2009, Cargo division accounted for 25.4% of the company’s total revenues. Furthermore, the company provides ground handling services, courier services, logistics, small package, and express door-to-door services. The company operates its business through a number of direct and indirect owned subsidiaries located across various nations. Some of its key operating subsidiaries include Aircraft International Leasing Limited, Lan Pax Group S.A.; Lan Argentina S.A.; Inversiones Lan S.A.; Aerolinhas Brasileras S.A.; Perdiz Leasing LLC, Transporte Aereo S.A.; Aerotransporte Mas de Carga S.A.; and Aerolane, Líneas Aereas Nacionales del Ecuador S.A. The company’s has classified its geographical operations into Peru, Chile, USA, Argentina, Europe and Others. During the fiscal year 2009, the company generated 12.5% of total revenues from Peru, 11.1% from Argentina, 18.6% from USA, 9.4% from Europe, 27.5% from Chile, and 20.9% of total revenues from Other countries worldwide. Recently, the company announced to acquire a 98.9% of the outstanding shares of Colombian airline AIRES. Also, LAN Airlines signed a bilateral interline agreement with Jetstar Airways (Jetstar), a subsidiary of Qantas in Australia. ___________________________________________________________________________________________ Lan Airlines S.A. - SWOT Profile Page 3 Lan Airlines S.A. __________________________________________________________________________________________ Lan Airlines S.A. - Major Products and Services Lan Airlines S.A. is a passenger and cargo services provider, based in Chile. Key services of the company include the following: Lan Airlines S.A., Major Products and Services Services: Domestic and international passenger services Cargo services Handling services Courier services Logistics Express door-to-door services Related services Source: Annual Report, Company Website, Primary and Secondary Research ___________________________________________________________________________________________ Lan Airlines S.A. - SWOT Profile Page 4 Lan Airlines S.A. __________________________________________________________________________________________ Lan Airlines S.A. - History Lan Airlines S.A., History Year Event type Description 2009 Corporate Changes/Expansions The company initiated its cargo operation in Colombia. 2009 Corporate Changes/Expansions The company started domestic passenger operation in Ecuador. LAN Airlines completed the replacement of its air fleet operating short distance routes. 2008 Corporate Changes/Expansions The process that began in the year 2000 completed its objectives the company retired its last Boeing 737-200. 2008 New Products/Services LAN Airlines started a new domestic destination in Argentina, Neuquen.
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