LAN To Invest USD$1.4 Bln In 2009-2011

LAN said on Friday that it will invest around USD$1.4 billion between 2009 and 2011 to expand its fleet.

LAN, which has operations across South America, will buy long- and short-haul planes as well as new-generation cargo aircraft, Chairman Jorge Awad said.

"These investments represent a firm bet on the future, aimed at boosting our competitive advantages," Awad told a shareholders' meeting.

Awad said LAN is trying to fend off global financial crisis by offering domestic services in Ecuador and expanding its cargo business in Colombia and Brazil.

"The development of new markets, the modernity of its fleet and financial solvency will enable LAN to keep producing significant results within global commercial aviation," Awad said.

Awad said the first half of 2009 will be a challenge, but said the outlook for the second half is better due to lower fuel prices and a fleet of more fuel-efficient planes.

"We know that the first half will be more difficult than the second, but... we are betting on seeing significant results in 2009 which will keep our long-term development plan on track," he said.

LAN has affiliates in Ecuador, Peru and Argentina. It accounts for more than half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.