PAUL LEWIS / SANTIAGO
LanChile plans to continue expanding its domestic subsidiary LanExpress, allocating it up to 60% of the major's domestic fleet of new Airbus A320s, and using the separately branded operation to spearhead the introduction of new automated ground-handling technology.
The Chilean flag carrier has so far transferred to LanExpress four of its five A320s and 12 of its 18 Boeing 737-200s now employed on domestic routes. LanChile has earmarked 20 of the 25 150-seat aircraft ordered to date for domestic services to replace elderly 737s. LanExpress expects to receive 12 A320s, including four new aircraft due for delivery this year.
LanExpress was launched in October, and will replace LanChile's subsidiary Ladeco Airlines by the end of the year. Faster passenger procedures are being developed for LanExpress, with electronic ticketing, automated check-in and a single-class configuration. LanExpress now commands a 70% share of Chile's 3 million-strong domestic passenger market compared with Ladeco's previous 40%.
LanChile's overall domestic market share last year totalled 85%, and the goal is to increase this to 95%. In terms of revenue, however, LanExpress's operation remains relatively small, generating around $200 million in sales.
Source: Flight International
