LAN Airlines Marshall Steele, Michelle Daigle, Samantha Frankel, Jorge Torres, Corey Woloschin

Introduction to Chile Official Name: Republic of Chile Declared independence on February 12, 1818 from Spain Current President: Sebastián Piñera Founding member of the U.N.

Chile’s Economy Produces more than 1/3 of the world’s copper In 2006, Chile became the country with the highest nominal GDP per capita in Latin America Income inequality is very high Ease of business rank is 49 th out of 183 economies

History of LAN Founded by Chilean Air Services commander Arturo Merino Benitez Began operations on March 5, 1929 Merged with Ladeco in 1998 – Became Latin American Network Airlines Voted in 2008 as the 3 rd best airline in the world and the best airline in South America

International Influence Largest airline in Chile and operates domestically in Peru and other Latin American countries Compromised of multiple different segments that serve different locations. – LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina Also has many international flights to the US, Europe, and Latin America Member of Oneworld (TM), the world's leading global airline alliance – Includes eleven of the world's biggest and best airlines

Industry Regularly scheduled intercontinental flights Oligopoly – many barriers to entry which inhibit new entrants increases industry attractiveness – relative power of consumers consumers can shop on price gives them power Competition- a few large businesses that service the same area – TAM: Brazil’s largest airline company Provides domestic and international travel Also in Oneworld Alliance – Aerolineas Argentinas Out of Argentina service to South American countries

Opportunities and Challenges Need to comply with legislation and policies – subject to special regulations Planes must meet safety regulations – Employees must know all safety procedures Challenges to minimize impact on environment- – Preserving natural resources while preventing pollution – Reducing waste that results from their activities

Interest to Business and Engineering Provides engineering and business jobs Very profitable industry Provides other businesses with domestic and international transportation

Global/National Environment Politics – President Piñera owned a large stake in LAN prior to election Criticized for his delay in selling them Finally sold all shares, raised $1.5 billion Possible tax misconduct Environment – Earthquakes can shut down flights, affect economy

Global/National Environment (cont.) Economy – Aircraft Industry due to bounce back after rough decade Terrorist attacks Increasing fuel prices More environmental regulations Technology – Inaugural Aircraft Industry Fair this March – Information Technology deal with IBM

Engineering Principles

Getting The Product The LAN fleet is composed of Boeing and Airbus planes, which are created at their factories. Materials are delivered by air, land, and sea to the manufacturing plant where the parts are made and put together Include aluminum, hydraulic fluid, composites, glass, wiring, sensors, lighting, and engine parts Companies like Boeing and Airbus put all these materials together into a plane Boeing 777s being assembled An Airbus 318 under construction

Engineers at LAN Aerospace Engineers – Design and oversee construction of planes Flight Engineers – Inspect planes, check and operate instruments during flight, plan and record fuel consumption Mechanics – Repair planes between flights

Safety Concerns Engine failure, equipment failure, cabin depressurization – Engineers must design structurally and mechanically reliable planes Turbulence, poor weather conditions – Engineers must compensate for flight variables

Questions for LAN What does the company do to mitigate environmental concerns? What technological improvements are they working towards? How do they benefit from the Oneworld Alliance? Do you plan on expanding further internationally?

Questions for Students What attractions should we make sure to see? How do you view America and its people? What is the night life like in Chile? What are they looking to do after they graduate? What is your favorite time of year in Chile? Have you ever left Chile or visited America?