Fire sale LAN to SQ... thats the only way to solve this.
On a more serious note, I think its a cultural thing. LAN has a "book" and they use it to do things a certain way. Its not always the right way... its the LAN way. As a company, this has worked for them in the past... so there is no drive to change things. My guess is that the top brass probably know that their CS is trash, but since it apparently still isnt bad enough to seriously threaten the long term profitability** of La Compania, I dont think that changing this is on anybody's radar screen.
(**) this of course remains to be seen, but thats a "long" term play that few care about these days, in LAN and also elsewhere
Also, it must be said that many of LAN's peer group competitors aren't much better in many CS aspects, so this also play's in LAN's favour. If the large American carriers were stellar in comparison (I think some are better, but not by a HUGE margin), this would put more pressure on LAN to move their arses in the right direction.