Successful LAN Business Plan Exceeds Expectations

LAN Chile officials disclosed this week that its plan to increase air traffic by 50 percent through the addition of new daily flights was too low an estimate. Halfway through the plan’s implementation -which will run through the end of 2008- LAN officials now believe that the actual figure will be 65 percent by the time the plan is fully applied.
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The plan, known by the name Plan Laser, was clear: to reduce costs by optimizing efficiency. Despite the difficulties of competing against Chile’s multiple bus lines, LAN showed that this could be done with higher capacity airplanes. As a result, by March 2008 the domestic air fleet will be fully composed of Airbus 318, 319 and 320 models planes.

In order to accomplish its goal the company launched new daily and nighttime flights, changes that have increased LAN’s domestic share from 62.9 percent in 2006 to 70.5 percent at the end of September 2007.

With the implementation of Plan Laser, direct flights have increased from 30 percent in 2006 to 70 percent thus far in 2007. Seven destinations now enjoy increased daily flights.

The most recent addition was a nighttime flight from Santiago to Arica –the first direct route- inaugurated earlier this month. In addition Calama, Antofagasta, La Serena and Concepcion are now serviced by increased daily, nonstop flights. The plan also included the first direct flights to Punta Arenas, a destination which until 2006 lacked service.