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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.

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lan airlines

LAN Airlines

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

introduction to chile
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
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 49th out of 183 economies
history of lan
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 3rd best airline in the world and the best airline in South America
international influence
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
  • 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
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
Interest to Business and Engineering
  • Provides engineering and business jobs
  • Very profitable industry
  • Provides other businesses with domestic and international transportation
global national environment
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
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
getting the product
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
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
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
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
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?