LAN Airlines Acquires Colombian Airline Aires

LAN Airlines S.A. has signed the definitive purchase agreement for the acquisition of 98.942 percent of the outstanding shares of Colombian airline Aires. Having completed the due diligence process, LAN will acquire Aires for $12 million in cash, in addition to assuming net liabilities of approximately $100 million, which includes $18 million of bank debt.

This transaction will provide the opportunity for an affiliate of LAN to participate in the Colombian passenger market, one of the largest markets in South America, thus allowing for LAN and its affiliates to continue strengthening their regional presence and providing seamless service to its passengers.

Ignacio Cueto, LAN’s president and chief operating officer, said, “We are very proud to announce this transaction. Aires has made an important contribution by allowing many people in Colombia access to air travel as a means of transportation. LAN will now consolidate this growth by elevating even further the airline’s safety, quality, and service standards. We will dedicate our maximum efforts to advance this process as swiftly as possible, applying the experience and recognized capabilities of LAN, so that passengers may benefit from the changes that will gradually be incorporated to the Aires operations.”

The Colombian affiliate will be managed by a team of Colombian executives and technical professionals. Aires will replicate LAN’s low-cost model already operating in the domestic markets of Argentina, Chile, Ecuador and Peru.