SANTIAGO, Chile--(Business Wire)--As previously reported, in February 2006 the European Commission,
in conjunction with the Department of Justice of the United Status,
initiated a global investigation including a large number of
international cargo airlines -- among them LAN Cargo S.A., the cargo
subsidiary of LAN Airlines S.A. ("LAN" or "the Company") (NYSE: LFL /
IPSA: LAN) -- for possible price fixing of cargo fuel surcharges and
other fees in the European and United States air cargo markets.
On December 26, 2007, the Directorate-General for Competition of
the European Commission has notified LAN Cargo S.A. and LAN of the
initiation of proceedings against 25 cargo airlines, among them LAN
Cargo S.A., for allegations of anti-competitive behavior in the air
freight business.
In the United States, the Department of Justice continues its
investigation into this matter.
LAN is currently studying the terms of the notification in order
to determine its course of action. The Company will formally respond
to the allegations and provide the evidence it deems appropriate.
Given the current stage of the proceedings, it is not possible at this
stage to anticipate the outcome.
From the outset LAN has instructed its personnel and advisors to
provide all necessary collaboration to the respective authorities. The
Company has maintained and maintains a policy of strict compliance
with existing legislation in the countries in which it operates and
condemns any infraction to its rules regarding competition.
About LAN
LAN Airlines is one of the leading airlines in Latin America.
"LAN" makes reference to the consolidated entity that includes LAN
Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as
well as LAN Cargo and its affiliates. The LAN Alliance serves 15
destinations in Chile, 12 destinations in Peru, 10 destinations in
Argentina, two destinations in Ecuador, 15 destinations in other Latin
American countries and the Caribbean, three destinations in the United
States, two destinations in Europe and four destinations in the South
Pacific, as well as 52 additional international destinations through
its various code-share agreements. Currently, the LAN Alliance
operates 70 passenger aircraft and 10 dedicated freighters.
LAN Airlines is a member of oneworld (TM), the world's leading
global airline alliance. It has bilateral commercial agreements with
oneworld partners American Airlines, British Airways, Iberia and
Qantas, as well as with Alaska Airlines, AeroMexico, Mexicana, TAM and
Korean Air. For more information visit www.lan.com or
www.oneworldalliance.com.
Chile:
LAN Airlines
Gisela Escobar - Head of Investor Relations
gisela.escobar@lan.com
Juan Jose Irarrazaval - Investor Relations Analyst
juanjose.irarrazavalg@lan.com
(56-2) 565-3944/8775
or
New York:
i-advize Corporate Communications, Inc.
Maria Barona/Melanie Carpenter, 212-406-3690
lan@i-advize.com
Copyright Business Wire 2007
