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Lan Airlines S.A.: SWOT Analysis & Company Profile

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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.

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									Lan Airlines S.A.

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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




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Lan Airlines S.A. - SWOT Profile                                                    Page 1
Lan Airlines S.A.

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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




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Lan Airlines S.A. - SWOT Profile                                                                                             Page 2
Lan Airlines S.A.

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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.




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Lan Airlines S.A. - SWOT Profile                                                                                    Page 3
Lan Airlines S.A.

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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




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Lan Airlines S.A. - SWOT Profile                                                                                 Page 4
Lan Airlines S.A.

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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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