LAN Airlines - Chile Plus3


24 Οκτ 2013 (πριν από 4 χρόνια και 6 μήνες)

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LAN Airlines

Marshall Steele, Michelle Daigle,
Samantha Frankel, Jorge Torres,
Corey Woloschin

Introduction to Chile

Official Name: Republic of Chile

Declared independence on
February 12, 1818 from Spain

Current President: Sebastián Piñera

Founding member of the U.N.

Chile’s Economy

Produces more than 1/3 of
the world’s copper

In 2006, Chile became the
country with the highest
nominal GDP per capita in
Latin America

Income inequality is very

Ease of business rank is 49

out of 183 economies

History of LAN

Founded by Chilean Air Services
commander Arturo Merino

Began operations on March 5,

Merged with Ladeco in 1998

Became Latin American Network

Voted in 2008 as the 3

airline in the world and the best
airline in South America

International Influence

Largest airline in Chile and operates
domestically in Peru and other Latin
American countries

Compromised of multiple different
segments that serve different

LAN Airlines, LAN Express, LAN Peru,
LAN Ecuador, and LAN Argentina

Also has many international flights
to the US, Europe, and Latin

Member of Oneworld (TM), the
world's leading global airline alliance

Includes eleven of the world's biggest
and best airlines


Regularly scheduled intercontinental flights


many barriers to entry which inhibit new entrants

increases industry attractiveness

relative power of consumers

consumers can shop on price

gives them power


a few large businesses that service the same area

TAM: Brazil’s largest airline company

Provides domestic and international travel

Also in Oneworld Alliance

Aerolineas Argentinas

Out of Argentina service to South American countries

Opportunities and Challenges

Need to comply with legislation and policies

subject to special regulations

Planes must meet safety regulations

Employees must know all safety procedures

Challenges to minimize impact on

Preserving natural resources while preventing

Reducing waste that results from their activities

Interest to Business and Engineering

Provides engineering
and business jobs

Very profitable industry

Provides other
businesses with
domestic and

Global/National Environment


President Piñera owned a
large stake in LAN prior to

Criticized for his delay in
selling them

Finally sold all shares, raised
$1.5 billion

Possible tax misconduct


Earthquakes can shut down
flights, affect economy

Global/National Environment (cont.)


Aircraft Industry due to
bounce back after rough

Terrorist attacks

Increasing fuel prices

More environmental


Inaugural Aircraft Industry
Fair this March

Information Technology deal
with IBM

Engineering Principles

Getting The Product

The LAN fleet is composed of Boeing and Airbus planes, which are
created at their factories.

Materials are delivered by air, land, and sea to the manufacturing
plant where the parts are made and put together

Include aluminum, hydraulic fluid, composites, glass, wiring,
sensors, lighting, and engine parts

Companies like Boeing and Airbus put all these materials together
into a plane

Boeing 777s being assembled

An Airbus 318 under construction

Engineers at LAN

Aerospace Engineers

Design and oversee construction
of planes

Flight Engineers

Inspect planes, check and
operate instruments during
flight, plan and record fuel


Repair planes between flights

Safety Concerns

Engine failure, equipment failure, cabin

Engineers must design structurally and
mechanically reliable planes

Turbulence, poor weather conditions

Engineers must compensate for flight variables

Questions for LAN

What does the company do to mitigate
environmental concerns?

What technological improvements are they
working towards?

How do they benefit from the Oneworld

Do you plan on expanding further

Questions for Students

What attractions should we make sure to see?

How do you view America and its people?

What is the night life like in Chile?

What are they looking to do after they

What is your favorite time of year in Chile?

Have you ever left Chile or visited America?