LanChile is phasing out its wholly owned domestic subsidiary Ladeco Airlines in favour of the recently launched airline, LanExpress, which is being equipped with new Airbus A320s.

The carrier will primarily serve LanChile's domestic network and a selected number of international routes including some flights to Buenos Aires. Ladeco, in which LanChile first acquired a controlling stake in 1995, will disappear as a name by year-end after more than 40 years of operations.

Three Ladeco Boeing 737-200s have already been repainted in the LanExpress logo, but will be replaced by six A320s ordered previously by LanChile as part of a purchase of 25 new narrowbodies. Unlike the 737s, the aircraft will be equipped with in-flight entertainment systems and feature increased seat-pitch.

As part of a $200 million investment in LanExpress, LanChilehas also overhauled ground handling operations including the introduction of self service check-in kiosks at Santiago and Conception airports and electronic ticketing.

LanExpress is intended to strengthen the airline's domestic competitiveness, with separate labour contracts from LanChile.

Source: Flight International