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LAN Airlines

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

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  1. LAN Airlines Marshall Steele, Michelle Daigle, Samantha Frankel, Jorge Torres, Corey Woloschin

  2. 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.

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Interest to Business and Engineering • Provides engineering and business jobs • Very profitable industry • Provides other businesses with domestic and international transportation

  9. 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

  10. 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

  11. Engineering Principles

  12. 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

  13. 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

  14. 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

  15. 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?

  16. 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?

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