Santiago, September 27st, 2011
LAN Airlines S.A. (NYSE: LFL / IPSA: LAN), announced that a Board Meeting held today analyzed the resolution of the Tribunal de Defensa de la Libre Competencia (TDLC), Chile’s antitrust court, regarding the merger between LAN and TAM, including the impact of the mitigation measures it imposed. The company confirms that during the course of this week it will continue to analyze said measures, their impact and effects.
As part of its analysis, the Board of Directors has considered it necessary to clarify that LAN is in compliance with the self-regulatory fare plan, as is effectively also recognized by the TDLC, and that it has provided in a transparent, timely and accurate manner all information that was required by the Antitrust Court.
Today, the company also filed a request before the TDLC requesting it to correct a series of numerical calculation errors that appear in the referred resolution which derived in affirmations and conclusions, currently of public concern, which affect the reputation of the company and its employees.
The resolution contains errors regarding the numerical calculation of LAN’s yields (revenues per passenger-kilometer on each route), which result in the TDLC questioning the information delivered by the company to the TDLC as well as to the Junta Aeronáutica Civil, Chile’s aviation authority, in the framework of its self-regulatory fare plan. Such errors led the TDLC to significantly overestimate both the yields and the revenues generated by the routes included in their calculations, questioning the conclusions of specialists’ reports commissioned by LAN and presented to the TDLC to demonstrate the company’s affirmations that its fares on domestic flights within Chile are on average lower than those in the United States domestic market.
Finally, LAN highlights that, considering its ongoing analysis and the course of action it may pursue, the company continues advancing with the actions necessary to complete the transaction and is confident to conclude the merger process with TAM during the first quarter of 2012.
LAN Airlines is one of the leading passenger and cargo airlines in Latin America. The company and its affiliates serve over 76 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 93 additional international destinations through its various code share agreements. LAN Airlines and its affiliates have a leading position in their respective domestic markets of Chile and Peru as well as an important presence in the Argentinean and Ecuadorian domestic markets. Furthermore, in November 2010, LAN acquired Colombian airline AIRES.
Currently, LAN Airlines and its affiliates operate 125 passenger aircraft while LAN Cargo and its respective affiliates have a fleet of 14 dedicated freighters. The Company has one of the youngest fleets in the world which has meant greater efficiency and a significant reduction in CO2 emissions, reflecting its strong commitment to the protection of the environment.
LAN is one of the few Investment Grade airlines in the world (BBB). The company’s world class quality standards enabled its membership in oneworld™, an alliance of leading global airlines of which LAN has been a member for 10 years. For more information please visit www.lan.com or www.oneworldalliance.com.
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