Chile’s LAN Airlines Hopes to Operate in Argentina in 2004

Chile’s LAN Airlines, the air carrier with the soundest spreadsheet all across Latin America, is hoping to reach out for the Argentine market this year by acquiring American Falcon, a U.S. low-budget air company.

Argentina is a strategic market for LAN in its bid to become the premier regional operator with flights all around the South American Cone, said Alejandro de la Fuente, LAN’s financial director.

Mr. de la Fuente noted his company –whose operations extend to Peru, Ecuador and the Dominican Republic- is right now assessing American Falcon’s finances. The U.S. air company used to operate a couple of jetliners for domestic flights and a route to Uruguay before closing up shop last January.

American Falcon owns hangars and maintenance equipment in some airports, as well as legal permits and clearances, a condition that will ease its eventual entry into the Argentine market, LAN officials point out.

Execs from Chile’s top airline expects to raise sales as much as 15 percent this year by opening up new routes to South America and relying on heftier air traffic and the region’s economic boom.