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Lan Argentina - will it be part of OW?

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Lan Argentina - will it be part of OW?

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Old Mar 13, 2005 | 6:01 am
  #1  
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Lan Argentina - will it be part of OW?

http://www7.lan.com/compania/lanchil...005_03_11.html

I welcome LAN's expansion, but from what I read elsewhere it appears LAN will own only 49% of the new venture, so I assume in that sense Lan Argentina will be similar to Lan Ecuador, and therefore unlikely to be part of Oneworld. Comments?
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Old Mar 13, 2005 | 9:24 am
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Lan Argentina should have the same status as Lan Ecuador. Lan Chile will own only 49% of Lan Argentina (as in Ecuador, in Argentina a foreign company cannot own a majority share of a local airline), that makes it 1% less of what is necessary to become a subsidiarie, 1% less of what is necessary to enjoy automatic inclusion in Oneworld under Lan Chile's membership.

Since Lan Argentina will be a completely separate entity from Lan Chile, the airline would need to be made a Oneworld member on an individual basis before being considered a part of Oneworld.

Last edited by Trotamundo; Mar 13, 2005 at 9:26 am
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Old Mar 13, 2005 | 2:08 pm
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Originally Posted by Trotamundo
Lan Argentina should have the same status as Lan Ecuador. Lan Chile will own only 49% of Lan Argentina (as in Ecuador, in Argentina a foreign company cannot own a majority share of a local airline), that makes it 1% less of what is necessary to become a subsidiarie, 1% less of what is necessary to enjoy automatic inclusion in Oneworld under Lan Chile's membership.

Since Lan Argentina will be a completely separate entity from Lan Chile, the airline would need to be made a Oneworld member on an individual basis before being considered a part of Oneworld.
To the best of my knowledge, LAN Peru was made a member of OW on the basis of its affiliation with LAN Chile, even though LAN only owned a minority holding. So I don't see a need for LAN Argentina to be made a member of OW on an individual basis. That said, I don't understand what the distinction/logic is behind the inclusion of LANs Chile and Peru vs. the exclusion of Ecuador....
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Old Mar 14, 2005 | 1:42 am
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Originally Posted by OWdevotee
I don't understand what the distinction/logic is behind the inclusion of LANs Chile and Peru vs. the exclusion of Ecuador....
Cost, presumably. OW demands certain standards of 'excellence' in service, marketing etc. for a carrier to join (as founder member AA is testament to, this has more to do with market impact on existing members than so-called excellence). I'm guessing that it made sense to join LAN Peru because of thru-traffic, while for Ecuador perhaps this makes less sense... just a hunch
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Old Oct 8, 2006 | 3:34 am
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Curious and curiouser...

Am bumping this thread as I've just completed a round trip to UIO on XL (LAN Ecuador) and remain curious about some inconsistencies with the exclusion from OW:

1. My flight was sold under a LA designator, yet according to the disclaimer statements on various OW and OW-member airline sites, flights operated by XL aren't part of OW, therefore don't qualify for mileage earn etc.

2. My BP confirmed this: "XL xxx marketed as LA xxx"

3. AA willingly allowed me to use the AAdmirals Club in SCL (the last chance saloon for us smokers) despite this not being a OW flight

4. At no other point was the word "Ecuador" mentioned in association with "LAN" (ie boarding announcements, in-flight announcements). Merely the shortform of "LAN" was used.

5. Cabin and cabin attendants in mainline LAN livery / uniforms.

6. In-flight magazines all mainline LAN.

7. Menus mainline LAN.

8. A OW logo on the LH side of the door to the plane.

The only noticeable difference was the [dis]comfort of seating - if J was bad on a 6-hour flight, I can't begin to imagine what Y must've been like.

I'm tempted to press for mileage status credits for these flights from QF but doubt I'll get anywhere. Given that this was sold as a OW-member flight and I even sat on a plane with a OW logo on it, is it worth pursuing? Hate to wave adios to just shy of 6K miles and 160 status credits.
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Old Oct 8, 2006 | 4:07 am
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Originally Posted by virtualtroy
Am bumping this thread as I've just completed a round trip to UIO on XL (LAN Ecuador) and remain curious about some inconsistencies with the exclusion from OW:

1. My flight was sold under a LA designator, yet according to the disclaimer statements on various OW and OW-member airline sites, flights operated by XL aren't part of OW, therefore don't qualify for mileage earn etc.

2. My BP confirmed this: "XL xxx marketed as LA xxx"

3. AA willingly allowed me to use the AAdmirals Club in SCL (the last chance saloon for us smokers) despite this not being a OW flight

4. At no other point was the word "Ecuador" mentioned in association with "LAN" (ie boarding announcements, in-flight announcements). Merely the shortform of "LAN" was used.

5. Cabin and cabin attendants in mainline LAN livery / uniforms.

6. In-flight magazines all mainline LAN.

7. Menus mainline LAN.

8. A OW logo on the LH side of the door to the plane.

The only noticeable difference was the [dis]comfort of seating - if J was bad on a 6-hour flight, I can't begin to imagine what Y must've been like.

I'm tempted to press for mileage status credits for these flights from QF but doubt I'll get anywhere. Given that this was sold as a OW-member flight and I even sat on a plane with a OW logo on it, is it worth pursuing? Hate to wave adios to just shy of 6K miles and 160 status credits.
I took a few LP flights one a LONE5 last year points didn't post as they are not suppossed to but I thought I would try my luck anyway and faxed my BP to QF along with a few other flights that hadn't posted. QF credited for me but not for my two friends who were on the same flight! So I guess you might as well try your luck they can and do make mistakes with posting.
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Old Oct 8, 2006 | 4:26 am
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Originally Posted by bensyd
I took a few LP flights one a LONE5 last year points didn't post as they are not suppossed to but I thought I would try my luck anyway and faxed my BP to QF along with a few other flights that hadn't posted. QF credited for me but not for my two friends who were on the same flight! So I guess you might as well try your luck they can and do make mistakes with posting.
LP is recognised as a OW affiliate.
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Old Oct 8, 2006 | 4:53 am
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Originally Posted by virtualtroy
LP is recognised as a OW affiliate.
Yes but per QF FF terms and conditions LP flight 1-399 do not earn points in "L" among others.
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Old Oct 8, 2006 | 7:34 am
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Originally Posted by virtualtroy
Cost, presumably. OW demands certain standards of 'excellence' in service, marketing etc. for a carrier to join (as founder member AA is testament to, this has more to do with market impact on existing members than so-called excellence). I'm guessing that it made sense to join LAN Peru because of thru-traffic, while for Ecuador perhaps this makes less sense... just a hunch
It's because Lan Argentina, Lan Ecuador and the now defunct Lan Dominicana are all less than 50% owned by Lan Chile so not subsidiaries. A previous poster said that Lan Peru was also less than 50% owned by LA, but that's incorrect. I dont remember the exact amount off hand, but its somewhere around 80% ownership. Most of South America is very protective and foreign ownership has been historically discouraged. Peru and Chile have a bilateral agreement that permits foreign ownership in each others countries. So Lan Chile is legally able to own more than 50% of Lan Peru and is able to make them into a subsidiary.
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