LAN Airlines - Chile Plus3

exhaustedcrumMechanics

Oct 24, 2013 (3 years and 7 months ago)

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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
high


Ease of business rank is 49
th

out of 183 economies


History of LAN


Founded by Chilean Air Services
commander Arturo Merino
Benitez


Began operations on March 5,
1929


Merged with Ladeco in 1998


Became Latin American Network
Airlines


Voted in 2008 as the 3
rd

best
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
locations.


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


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


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


Includes eleven of the world's biggest
and best airlines


Industry


Regularly scheduled intercontinental flights


Oligopoly


many barriers to entry which inhibit new entrants


increases industry attractiveness


relative power of consumers


consumers can shop on price


gives them power


Competition
-

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
environment
-



Preserving natural resources while preventing
pollution


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
international
transportation


Global/National Environment


Politics


President Piñera owned a
large stake in LAN prior to
election


Criticized for his delay in
selling them


Finally sold all shares, raised
$1.5 billion


Possible tax misconduct


Environment


Earthquakes can shut down
flights, affect economy




Global/National Environment (cont.)


Economy


Aircraft Industry due to
bounce back after rough
decade


Terrorist attacks


Increasing fuel prices


More environmental
regulations


Technology


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
consumption


Mechanics


Repair planes between flights




Safety Concerns


Engine failure, equipment failure, cabin
depressurization


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
Alliance?


Do you plan on expanding further
internationally?

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
graduate?


What is your favorite time of year in Chile?


Have you ever left Chile or visited America?