Oneworld Welcomes LanChile

<B>Oneworld Welcomes LanChile</B>

By David Jonas

LanChile Airlines on June 1 officially joined the Oneworld alliance, marking its entry into the global game, while antitrust immunity with American Airlines will help make the Chilean carrier more attractive to U.S. buyers with South America travel needs. An infusion of new planes, plans to revamp its premium cabins and an emphasis on proliferating distribution channels will help LanChile reach its goal of becoming one of the world's top 10 international carriers.

Juan Manuel Perez, LanChile's recently appointed sales director for North/Central America and Asia, said the U.S. corporate market will remain a top priority. "We already are dealing with 45-50 U.S. accounts on a regular basis, including MinuteMaid, Coca-Cola and Home Depot," he said, adding that Carlson Wagonlit Travel and Rosenbluth International are critical avenues to the corporate market.

LanChile has explored several corporate contract configurations, including volume-based and share-based deals. Net fares also are gaining popularity, as they have with domestic carriers. "Of course, the contract depends on the destinations each account needs and the volume they can provide," Perez said. "Also, some clients like to go through their agency or a consortium, and others prefer to deal directly."

LanChile's long-haul fleet consists of 16 Boeing 767s, averaging just three years in age, making it one of the youngest in the Americas. In September, new Airbus 340s will begin arriving, freshening the fleet even further and preparing LanChile for expansion.

Meanwhile, the premium class cabins on the long-haul fleet are being revamped and reconfigured. First class will feature 10 fully reclinable seats, while business class will have 28 seats with more pitch, a new menu and other improvements. The redesign has been completed on a few aircraft; the entire fleet is expected to be finished by mid-August.

LanChile flies to Los Angeles, Miami and New York, though codeshare possibilities with American are numerous. "The AA partnership elevates the commercial benefits by enabling us to sell LanChile in North American cities we don't fly to, such as Chicago, for example," Perez said. "And the antitrust immunity gives us the right to jointly negotiate airfares, do joint marketing and expand our sales efforts in general and to corporations in particular." The larger Oneworld partnership also gives LanChile a stronger presence in Australia, Europe and Asia and opportunities for expanded codesharing.