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Caso Lan Expansion Essay

3928 words - 16 pages

The present study examines the case of Latam in its internationalization process, first as Lan Chile (Chile) and TAM SA (Brazil). The basis on which this process takes place is not only the enabling environment that has offered Latin America in the last 20 years in economic stability and growth, are also given in the context of privatizations, deregulation in various aspects of the economies of the region, openness to international trade and policies gradually adopted by most economies in the region, with flexible exchange rates, mostly autonomous central banks acting under inflation targeting and counter-cyclical fiscal policy, all this in accordance with the acceptance the so-called ...view middle of the document...

In partnership with Iberia, in 2001 it inaugurates a cargo terminal at the airport in Miami. It continues its policy of alliances in 2002 with Qantas and the German Lufthansa Cargo. In 2003 continues the expansion plan with the launch of LAN Ecuador in 2005 and creating specific LAN Argentina. 2004 renamed to "LAN Airlines" and in each country where it operates, the country's name was added to LAN.
LAN and consolidated leadership positions in Chile, Ecuador and Peru, and incipiently in Argentina. LAN internationalization was also positively affected in 2007 with the relaunch direct flight from Santiago to New York, launching its service from Santiago to Los Angeles, and from Lima to Madrid. In 2007 started the implementation of the low cost model in domestic markets and particular a capital increase by US $ 320 million, while pursuing orders for 32 Boeing 787 Dreamliners. The following year completes the process of renewal of short-range fleet, now formed by the Airbus 320 aircraft family in 2009 starts to cargo operations in Colombia and passengers in the domestic market of Ecuador. 2010 attends the purchase order to acquire a further 80 Airbus A320 and parallel purchase Colombian airline AIRES. In this way, LAN Airlines in 2011, was incorporated into the matrix of a group of companies developing business in the air transport industry and other complementary to that category operations, providing services to domestic and international passenger services in Chile, Peru and Argentina and internationally in Ecuador, through the various companies that make up the LAN alliance: Lan Airlines, Lan Express, Lan Peru, Lan Ecuador and Lan Argentina.

LAN is one of the airlines with greater flow of passengers in South America, is among the 40 airlines with the highest income in the world and divided the business of passengers in three main segments: long-range operations, routes within South America (also called operations regional) and domestic flights in Chile, Peru and Argentina. In the first two countries, it has the largest share of the domestic market. Controls 74% of Chilean domestic market, 67% of Peru and 8% of Argentina. Regarding the international market, it has a 49% in Chile, 32% in Peru, 19% in Ecuador and 8% in Argentina. He has also received awards last several years due to its quality of service.

In early 2012, before the merger with TAM Brazilian it goes through, LAN Airlines was one of the leading Latin American airlines in passenger and cargo. It provided services to over 100 destinations worldwide through an extensive network that allowed it to offer a wide international connectivity, linking the region with North America, Europe and the South Pacific. Through partnerships and various code-share agreements, LAN and its subsidiaries as 70 additional international destinations. The company operated 137 passenger aircraft while LAN Cargo subsidiary did with 14 cargo aircraft, with one of the most modern fleets in the world, which...

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