lan airlines | presidente riesco 5711, piso 3, santiago ... · lan airlines | presidente riesco...

LAN AIRLINES | Presidente Riesco 5711, piso 3, Santiago, Chile | (56 2) 565 3726 |www.lan.com


An overview of LAN Airlines Note: The following document contains general information about the company and its affiliates, which can be used as support in future publications. The information is

current to septembrer 2013 and is considered public.

About LATAM Airlines Group

• PERSONNEL:

More than 53.000 employees.

• FLEET:

307 passenger planes Airbus 340: 3

Airbus 330/321/320/319: 240 Boeing 767 – 300: 42 Dash 8-200/Dash 8Q400: 9 Boeing 737-700: 6 Boeing 787: 3 Boeing 777: 10

16 cargo planes:

Boeing 767- 300F: 12 Boeing 777F: 4

- One of the newest and most modern fleets in the industry, with an average of 6. 7

years.


First in Latin America to receive the Boeing 787 Dreamliner: in September 2012, LAN received

its first Boeing 787, which is part of an order for 32 aircraft to be incorporated gradually. This

aircraft is the most modern of its kind in the world that consumes up to 20% less fuel and reduces

by up to 40% of ambient noise footprint on takeoff. LAN Airlines is one of the first in the world and

the first in Latin America to fly the Boeing that has revolutionized revolutionize the airline industry

to incorporate the latest technology:

• Innovative, modern and harmonious design.

• Electronic dimming of the windows and dynamic lighting that create a better

lighting atmosphere. At the same time, preparing the passenger for the different

stages during the flight (day, night, etc.) and for the time zone to which they are

arriving.

• Larger windows with a surface area 40% greater than today, which will

allow all passengers better visibility during the flight, and a better view.

• 30% more storage space for carry-on luggage.

• The aerodynamics and technology reduce the effects of turbulence on

passengers. In addition, the cabin is pressurized to a lower altitude (6,000 feet

instead of 8,000), which will result in the reduction of headaches

or other symptoms a passenger might experience.

• New air humidification techniques reduce fatigue and dryness associated

with long trips.

• The passenger may have a more enjoyable trip thanks to technology in the

engines that make them less noisy, generating less noise impact inside the cabin

and outside the aircraft.

- Between 2017 and 2018 LAN will receive 20 Airbus A320neo planes, with a more

ecological operation.

• More efficient engines.

• Aerodynamic devices called "Sharklets".


• Up to 15% fuel savings among other benefits.

• They will be delivered between 2017 and 2018.

- By 2020, more than 100 new aircraft are expected.

- Installation of winglets on all Boeing 767 fleet: in 2011 CO2 was reduced by 113,000

tons by this method.

NETWORK OF DESTINATIONS:

Long-haul flights: North America, Europe and South Pacific.

Regional flights: Inside South America.

Domestic flights: Within Chile (since 1929), Peru (since 1999), Argentina (since

2005), Ecuador (since 2009) and Colombia (December 2011).

- More than 750 destinations in the world (100 of them are operated directly by LAN

and its affiliates).

Destinations:

o Long Haul:

Miami

New York

San Francisco

Los Angeles

Mexico

Cancun

Habana

Madrid

Frankfurt

Auckland

Sidney

Easter Island

Papeete

Paris


Punta Cana

o Regional:

Buenos Aires

(Ezeiza/Aeroparque)

Cordoba

Mendoza

Montevideo

Sao Paulo

Rio de Janeiro

Brasilia

Lima

Bogota

Guayaquil

Caracas

Quito

Cali

Cartagena

Medellin

Iguazu Falls

La Paz

Santa Cruz de la Sierra

Rosario

o Domestic Chile:

Santiago

Concepcion

Temuco

Osorno

Valdivia

Puerto Montt

Punta Arenas

Balmaceda

La Serena

Copiapo

Iquique

Antofagasta

Calama

Arica

Isla de Pascua

Chiloé

o Domestic Argentina:

Buenos Aires (Aeroparque/Ez

eiza)

Bariloche

Comodoro Rivadavia

Cordoba

El Calafate

Iguazu

Mendoza

Neuquen


Rio Gallegos

Salta

San Juan

Tucuman

Ushuaia

Bahia Blanca

o Domestic Peru:

Arequipa

Cajamarca

Cusco

Chiclayo

Iquitos

Juliaca

Lima

Piura

Pucallpa

Puerto

Maldonado

Tacna

Tarapoto

Trujillo

Tumbes

o Domestic Ecuador:

Guayaquil

Quito

Cuenca

Galapagos Santa

(Cruz/Santa

Cruz)

o Domestic Colombia:

Cartagena

Barranquilla

Santa Marta

Bucaramanga

Monteria

Apartado

Armenia

Manizales

Pereira

Cucuta

Ibague

Letizia

Neiva

Puerto Asis

Quibdo

San Andres

Valledupar

Villavicencio

Cali

Medellín

Yopal


• LANPASS: More than 7 million LANPASS members in the world.

• oneworld: An alliance that brings together the 13 biggest and

best airlines in the world.

- More than 750 destinations.

- Almost 150 countries.

- 20 affiliate airlines.

LAN CARGO:

• CHARACTERISTICS:

- More than 80 years of experience in transporting cargo.

- Differentiating characteristics in efficiency, coverage, service quality,

reliability and experience.

- Headquarters in Miami, one of the five most important cargo airports

worldwide.

- Cargo operator in 3 main points between the U.S. and Europe, and 34

destinations in Latin America, making it the largest cargo company in the region.

- One of the most modern fleets in the world.

- Transporter of the main products of the region such as: flowers, asparagus,

salmon and blueberries, among others.

- In 2010, LAN inaugurated the largest and most modern cold warehouses of an

airline in the U.S. (Miami) and in July 2011, the most modern warehouses in

Latin America, in Columbia.


• CARGO TRAFFIC:

- Around 40% participation in the international cargo traffic of Latin America.

- More than 870,000 tons of cargo transported during the year.

• CARGO FLEET:

4 next generation Boeing 777 planes,2 with the aim of strengthening the long-

haul routes.

12 Boeing 767F

• AFFILIATES OF LAN CARGO:

Brazil: ABSA (Marketed under the brand TAM)

Colombia: LANCO

Mexico: MASAIR

LAN AND THE ENVIRONMENT

- - Modern fleet with an average of 6.7 years.

- Measuring of the carbon footprint of the company.


- Recycling on land: more than 1,000 tons of waste recycled through this program

annually.

- Operational efficiency (LEAN): Reduces 100,000 tons of CO2 annually.

- E-freight: A program that reduces paper use in the processes of LAN CARGO. More

than 7,800 tons of paper documents are reduced each year.

LAN AND TOURISM

- LAN develops tourism in South America, connecting the major tourist

destinations in the region with the world, allowing thousands of South

Americans to visit them in addition to bringing the region to other countries.

- The company has the largest tourist circuit of South America, connecting directly to

the most attractive places in the region, such as The Galapagos Islands, Easter

Island, Cusco, Iguazu, San Pedro de Atacama, among others.

- Corporate Social Responsibility Program of LAN "Cuido mi Destino", which

promotes tourism awareness in the communities where the company operates,

through the recovery of public spaces.

• 3 consecutive years in each destination sensitizing students, workers and local

entrepreneurs.

- Since its launch in 2009, LAN’s top CSR program “Caring for my Destination” has

recovered more than 20 areas with tourism value, in 10 cities across the continent.

By 2015, it expects to realize 63 recoveries of 25 different destinations in the

region, mobilizing 5,000 young students, so that future generations can enjoy the

same attractions.


TRAVEL EXPERIENCE WITH LAN

- The service on board LAN is specially designed to provide the passenger with a

better travel experience.

- LAN has three classes on board depending on the model of the aircraft: Premium

Business, Premium Economy and Economy:

• Premium Business on LAN:

• Service based on providing rest, with full flat seats, 100% horizontal.

• Menu designed by a renowned chef panel that incorporates natural

products characteristic of the South American region.

• Wine list selected by the only Master Sommelier in Latin

America, Hector Vergara.

• The best entertainment on board: Each seat features a 15.4 inch high-

resolution screen and an audio-video system that can be

used freely. There is a repertoire of 47 films (8 new releases and

39 classics), 123 channels of TV series, 750 music CDs and 20 games.

• A Bvlgari amenity kit.

Premium Economy:

• Designed to take advantage of the passengers’ time.

• For greater convenience, this class has a universal outlet for

charging computers, iPods, DVD players or video games.

• This class was specifically designed to respond to what business

travelers value most on short flights: Caring for your time and excellent

service. In this class you can take complete advantage of a premium


service, flying Economy: VIP lounge access, front row seat with the middle

seat blocked, preferential check-in and boarding,

preferential disembarkation and baggage claim, Premium Business service

on board, 125% accumulation of LANPASS kilometers and an

increased baggage allowance (3 pieces of 23 kg each).

Economy:

On-board entertainment services on all long-haul flights: latest releases in

movies that include a selection of South American movies, games and

more than 750 music CD’s.

Ergonomically designed seating, reclining with adjustable headrests, to

make passengers more comfortable.


LATAM in Numbers

TEMA LAN

TAM

LATAM


Fleet __________

__________

319

Flight purchase order 110

108

118

Employees __________ ___________ Más de 55 mil empleados

Daily flight average 600

1200

1.800 vuelos al día

Passenger Destinations __________ ____________ 150 destinos (con superposición incluida)

Countries 18

16

22 países (con superposición incluida)

Regional operation

AR, CL, EC, COL, PE

BR

AR, CL, EC, COL, PE,BR

Passengers transported

63,5MM

Passengers transported from the USA to South America

399.900 157.734 557.634

Passengers transported from the EU to South America

232.829 197.871 430.700

Frequent Flyer Program Nace en 1984

Nace en 1993

Members 7,0 millones de socios

10,5 millones de socios

17,5 millones de socios en el mundo

CARGO FIGURES

Cargo Destinations 169

Countries 27 Fleet 16 aviones

cargueros


LAN AIRLINES HISTORY

1929: The Company begins operations.

1946: First flight to Argentina.

1958: First flight to the U.S.

1964: Incorporation of the first jet aircraft.

1970: First flight to Europe.

1989: Privatization of LAN Airlines.

1994: Acquisition by the existing shareholders.

1997: Listed on the New York Stock Exchange (“LFL”)

1998: Beginning of the fleet renovation program with the Boeing 767 cargo aircraft.

1999: Beginning of LAN Peru operations.

Commercial alliance with American Airlines.

2000: Incorporation into oneworld alliance, comprised of the world's leading companies.

Renovation of fleet program includes 27 Airbus passenger aircraft.

2001: Inauguration of the new cargo terminal in Miami, one of the largest facilities that a foreign

airline has in the U.S. Includes export and import terminals, cold storage, warehouses and offices.

Commercial alliance with Iberia.

2002: Commercial alliance with Qantas.

Commercial alliance with Lufthansa Cargo.

2003: Beginning of LAN Ecuador operations.

2004: Launch of new corporate image: LAN Airlines SA ("LAN”)

2005: Beginning of LAN Argentina operations.

Approval of orders for 44 aircraft.


2006: Introducing the new Premium Business Class.

2007: Launch of the "Nueva forma de viajar" on domestic routes in Peru and Chile.

Capital increase by $ 320 million.

Orders for 32 Boeing 787 Dreamliners and 4 Boeing 777 freighters.

2008: Renewal process of short haul fleet finishes with the retirement of the last Boeing 737-

200.

The company operates only the new Airbus A320 family on domestic and regional routes. Its fleet is one of the most modern in the world. National Council of Civil Aviation of Ecuador authorizes the start of operations of LAN Ecuador in the domestic passenger market. Aeronautical Authorities of Colombia authorize the creation of the new LAN CARGO

subsidiary in that country.

2009: 80 years of operation of LAN.

Start of new cargo operations in Colombia and domestic passenger operations with LAN Ecuador. Arrival of two Boeing 777 freighters.

Purchase orders for 30 Airbus A320 family aircraft.

2010: Agreement to acquire 50 modern Airbus A320 family aircraft.

LAN and TAM signed a non-binding Memorandum of Understanding (MOU)

in which they agreed to carry out their intention to combine their businesses under a

single parent entity.

Start of route to San Francisco from Lima.

LAN Airlines began operations from Madrid to Paris.

In November 2010, LAN acquired the Colombian airline, AIRES.

2011: Purchase order for 20 eco-efficient Airbus 320neo aircraft, which will join the fleet starting

in 2017.

Launch of accounts in social networks: Twitter and Facebook, to be closer to customers.

Opening LANCO warehouses in Colombia, one of the safest and most modern warehouses

in the region.

Beginning of LAN Colombia operations.

2012: LAN performs made the first commercial flight in South America using second

generation biofuels (between the Chilean cities of Santiago and Concepcion).


In June, LATAM Airlines Group was born after the merger between LAN Airlines and

TAM Airlines.

LAN is the first airline in the Americas to receive and operate the Boeing 787.


ANNEXES:

I. Overview of the fleet.

II. LAN Maintenance Base.

III. Crew Training Center.

IV. Flight Simulators.

V. Passenger and Family Support.


I. Overview of the Fleet

Airbus 320 -200

- Manufacturer: Airbus Industries.

It was the first commercial aircraft with controls completely fly-by-wire, with which the

pilot controls the moving parts of the plane with a joystick through a computer system,

instead of levers and hydraulic systems. From this model versions of lower fuselage were

derived, A318 and A319. The A320 was launched in 1982, first flew in 1987 and

began commercial operations a year later.

- Date this model joined the LAN fleet: October 2000.

Airbus 319 - 100


Member of the A320 aircraft family. Its controls are fly-by-wire and it is almost identical to

theA320, except that the fuselage is shorter and has more duration (having the same fuel

tanks as an A320, but fewer passengers). First flown in 1995 from Hamburg, Germany.

- Date this model joined the LAN fleet: December 2003.

Airbus 318 – 121

- Manufacturer: Airbus Industries

The smallest and newest member of the A320 family. It was released in 1999 and

began commercial operation in 2003. Like the A320, it is piloted with fly-by-wire technology


with which the moving parts of the plane are controlled with a joystick through a computer

system.

- Date this model joined the LAN fleet: May 2007.

Airbus 340- 300


Aircraft with four engines and wide-body, the A340-300 was designed to meet the market

needs of 300 passengers and long haul. Launched in 1987, the aircraft has a range of

over 13,700 km, so it is aimed at long distance and high occupancy. Began commercial

operation in 1993 with Lufthansa and Air France.

- Date this model joined the LAN fleet: September 2000.

Boeing 767- 300ER

- Manufacturer: The Boeing Company

The Boeing 767 is a twin-engine aircraft for long haul flights. It has a twin-aisle wide body. It is

the plane that crosses the Atlantic Ocean most often.

There are several versions of the 767, the most popular being the 767-300ER, with more than

50% of the entire aircraft model. First flown in 1986 and began operations with American

Airlines in 1988.

- Date this model joined the LAN fleet: 1992.

Boeing 767- 300F


- Manufacturer: The Boeing Company.

The 767 Freighter is a derivative of the popular 767-300ER (extended range).

It was released in January 1993, when United Parcel Service (UPS) announced an order for

60 freighters. The first of these aircraft was delivered to UPS in October 1995.

The 767 freighter is similar in external appearance to the passenger aircraft 767, except for the

lack of passenger windows and doors.

- Date this model joined the LAN fleet: September 1998

Boeing 777F


The Boeing 777 Freighter aircraft is a twin-engine long-range, high capacity aircraft, which is

based on the 777-200LR Worldliner. Its entry into service was during the first quarter

of 2009. The Boeing 777 has a capacity of 104 tons with a range of 9,045 kilometers carrying

a full payload.

- Date this model joined the LAN fleet: April 2009.

Boeing: 737- 700


It is one of the most recent versions from this family and it is designed for long-haul routes.

The B737-700 was released on January 31, 2006.

The versatility of the aircraft and its efficiency make it a favorite aircraft by airlines that

have long-range destinations.


II. LAN Maintenance Base

Safety of operations is a key objective for LAN Airlines and its affiliates, and a priority

commitment to its passengers and cargo customers.

The company has a modern maintenance base where their aircraft are regularly subjected to

strict programs established by manufacturers and the respective aeronautical authorities.

Compliance by LAN to the highest standards of safety, has earned certification, among others, by

the Federal Aviation Administration (FAA), along with the directors of aviation in each

region: ANAC of Brazil, Peru, Argentina, Ecuador and Mexico.

It also has IOSA certification (IATA Operational Safety Audit), which certifies compliance with the

highest international standards required in this area, with a quality assurance system in the

planning, execution and control of operations.

The maintenance base, composed of a select group of 1,600 professionals and technicians, is

equipped with cutting-edge facilities and equipment that allows quality, secure and efficient

service.

As one of the most modern maintenance base in Latin America, it serves the needs of its own fleet

and external customers with 24 hour operation, 365 days a year.

Among the facilities, there are two large hangars of 5,200 m2 and 4,800 m2 each, where they

perform major maintenance work and 13 workshops, housed in an additional area of 5,400 square

meters, where support tasks related to avionics, electrical, general mechanics, welding, engines,

hydraulics, wheels and brakes, electronics, paint, composite materials, galley, upholstery, and

cabin are done. In addition, the Base has a specialized laboratory-NDT-equipped with the latest

technology for ultrasonic inspection. This allows for development of programs ranging

from repairing structural modifications to the widest range of components.


At the base, daily checks on the aircraft are made by the Line Maintenance area, and major

inspections, structural repairs and modifications made by Heavy Maintenance.

Due to the importance of comfort and excellent service on board, a Cabin Maintenance area,

oriented especially inside the aircraft, was created.

LAN sends its engines to specialized centers for repairs, such as IAI in Israel, Lufthansa Technik and

MTU in Germany and, to the plants of the engine manufacturers, General Electric and

Pratt & Whitney, in the United States and other countries. In turn, the Base has on-

site representatives of Pratt & Whitney and General Electric as well as Airbus and Boeing, which

allows direct and permanent contact with the aircraft and engine manufacturers.

The company has contracts with Lufthansa Technik and Air France Industries, for maintenance of

aircraft components that make up the LAN fleet; these companies are world leaders in repair

of aircraft equipment. For units not covered under the contract, component workshops,

certified by FAA and DGAC, are used.

At the Base is also the Maintenance Control Center that constantly monitors the technical aspects

of the fleet, at all points of the network operated by the company, to maintain constant

communication with the pilots during flight.

Safety being the cornerstone in the task of aircraft maintenance, LAN has an active training

program for all professionals and technicians through Lufthansa LAN Technical Training (LLTT)

and constantly exchanges information with the manufacturers of the fleet (Airbus and Boeing) and

the most important airlines in the world, including members of the oneworld alliance.

The LAN Maintenance Base delivers technical, human and infrastructure resources that allow

maintenance work first-rate development, which has been reflected in the quality of service and

safety that it gives users.


III. Crew Training Center

At the Crew Training Center for on board service is the Cabin Emergency &

Evacuation Trainer (CEET), where cockpit and cabin crews exercise safety

procedures and emergency practices.

The CEET is an aircraft, the only one in Chile, specially fitted for LAN for staff training. Here, some

of the tests required for renewal of licenses to fly are also performed.

The CEET, which began operations in November 2004, is equipped with the latest technology and

has the latest equipment to simulate situations as they occur in reality.

As part of their ongoing training, at this facility crews have evacuation practice for all types of

aircraft that make up the fleet of LAN Airlines and affiliates.

Among the advantages, it features a video system that lets you record and review exercises to

evaluate the instruction process.

This training center is certified by the respective aeronautical authorities of Chile, Argentina, Peru

and Ecuador for the training of crews according to the strict safety standards of the company.

The CEET is an initiative that grew out of a collaboration between different areas of the company,

including Training, Maintenance and Infrastructure, who, coupled with a team of engineers,

especially designed and conditioned the aircraft for pilots and crew of LAN Airlines and its affiliates

to undertake their training in a place designed for this purpose.

The training center for on-board service also has a Mock-Up Service, where the cabin crew

exercise procedures associated with in-flight practices.

The Mock-Up is a simulation of an equipped aircraft in a room and is also equipped with a video

system that lets you record and review the behaviors and attitudes associated with on-board

service.


Training Plan

Initial training of cabin crew is a process that lasts for 9 weeks. During this period practical

and theoretical training is done on issues associated with service and safety.

In turn, the crew must perform an annual training required by the Civil Aviation

Directorate (DGAC), in order to defend their flying license. This process, called Recurrent, lasts two

days and is done in conjunction with the cockpit crew. Its aim is to practice all Safety and

Emergency procedures.

The crew-training center also plans, on an annual basis, renewals of service in order to

strengthen aspects of new procedures, attitudes and behaviors associated with the

service delivered in different classes.

IV. Flight Simulators

The safety of operations is a matter of great importance for LAN Airlines and, specifically, flight

simulators are key steps in this process.

Within the complexity involving the safety standars of the Company, the training and instruction

of the pilots in an airline plays a key part. That's why LAN Airlines selects and hires the best

professionals and subjects them to rigorous training that allow them to adequately address any

situation that may occur during a flight.

Part of that training is conducted in flight simulators that are modern and advanced facilities with

modern technology to perfectly recreate the cockpit of an airplane. They are mobile

structures, formed by six hydraulic axles that reproduce all the physical movements of an aircraft.


In flight simulators, the various conditions that can occur are recreated, such as

snowstorms, strong winds, low visibility approaches and contingencies in any system of

the plane. They also have a cutting-edge visual system, allowing accurate assessment of any

airport currently operating in the world.

Once the door of a simulator is closed, nothing differentiates it from a real cockpit.

The pilots must face the most extreme situations the instructor poses. Even those of

very remote occurrence are programmed, since within LAN’s strict security procedures, it is

necessary to practice and be prepared.

Each aircraft type has its own simulator and this is how LAN Airlines’ pilots are trained in the

different models of Airbus and Boeing, according to their respective training. As a result, every

time our passengers board a LAN flight, they can be confident of doing so with a company that

gives the highest priority to the safety of its operations and has made it a daily commitment of

all those who work in LAN.

The alliance between LAN and the Canadian company CAE Inc., world leader in manufacturing

simulators, has allowed installation in Chile, supporting the prestige of aviation safety that the

country has.

Thus was created and developed the modern aeronautical complex where three flight simulators

are located: Two Airbus A320 and one Boeing 767-300, plus a fixed simulator for

Airbus A320 and A340, all designed and equipped with the latest technology.

This training and pilot training center is one of a kind in Chile and the second largest in South

America. Here, training courses and revalidation of flight licenses are held periodically. This

has allowed our country to become a regional benchmark for safety as pilots from Peru, Ecuador,

Argentina and other Latin American countries also received their training in this center.


This complex is an important contribution to the modernization and prestige of aeronautical

safety in LAN and the region.

V. Passenger and Family Support

Since the year 2000, LAN Airlines has a grouping of Assistance to Passengers and Families (APF),

consisting of company personnel who are committed to the job of supporting, assisting

and informing all people who have been affected by an air emergency.

This group completes a demanding training program, which allows people to control their

emotions, show solidarity and respond to complex situations, among other things.

The company has over 1,000 volunteers, which are distributed in our various affiliates and North

America.

lan airlines | presidente riesco 5711, piso 3, santiago ... · lan airlines | presidente riesco...

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