RJ_Delta From Chile, joined Oct 2000, 1904 posts, RR: 16 Posted (4 years 6 months 4 days ago) and read 4504 times:
A year ago, in August 2006 LAN Airlines launched LASER - Línea Aérea Segura Eficiente Regional - its new concept in short haul flights to offer more alternatives to travel within South America countries including all domestic flights in Chile, Peru and Argentina. The "new alternatives to travel" consists to simplify fares, more frequencies, more directs and non stop flights, improving the connectivity within South America countries.
LAN was forced to launch this new short haul because two reason: GOL international expansion and the change of the commercial aviation. LASER - formally knows as "Evolution Plus"- is a mix of traditional service and low cost model offering a new concept of an easy flight with a high quality in all routes of 3 or less hours of flight served by an A32S aircraft.
The LASER model consist:
1- A common fleet, standardized on the Airbus A320 family.
2- Optimization of the fleet. More use of the aircraft. Thats includes night operations, reducing time during the stops, a modern fleet to reduce maintenance hours.
3- More frequencies to all destinations.
4- Simplify and low fares.
4- Growth of the demand more than 40% in all regional destination.
5- Incentive to use the E-Ticket and use the auto check-in machine in all airports served by LAN to reduce the airport procedures.
6- Type of service according with the real time of flight.
During eight months LAN tested its new model, introducing it gradually on determinate routes first in Chile, then in Peru, continuing with international routes from/to Chile and Peru and finally in LAN Argentina routes. In April 2007 after the successfully tests, LAN decided to launch the LASER model in all routes. Now LASER is working in all domestic flight in Chile, Peru, Argentina and the regional flights of LAN Chile, LAN Peru and LAN Argentina.
Now after twelve month the LASER model is a great success for LAN and for its passengers, reporting also good profits until the 2nd quarter 2007. Since LASER was launched the demand was increased over 60% in all LAN routes, specially in the regional routes within Chile, Peru, Brazil and Argentina.
According with the LAN statistics, the company reports an important growth in all passenger operations referred in terms of ASK (available seat -kilometers)
The growth of the passenger traffic responds because two reasons: simplify and low fares and more frequencies. Also the implementation of the LASER model leads to strong growth traffic and the load factors. For example the load factor in the LAN Chile domestic flight grew from 59,6% in August 2006 to 68,4% in July 2007 and for LAN Peru the load factor was increased from 65% in August 2006 to 76,7% in July 2007.
According of LAN flights, the nonstop flights increased in 5% from 36% in the 2006 to 41% in July 2007. For the 2008 the 70% of the LAN operations will be nonstop flights.
Ticket and Sales: One of the essential factor of the LASER is to offer a simplify fares combined with more alternatives to travel, offering also low fare. LAN has stimulated the use of the E-Ticket in all routes allowing to the company to reduce cost. The Ticket Sales via the Internet ( specially via LAN's website www.lan.com ) increased from 17% in December 2006 to 34% in June 2007 in relation with the total of sales. Also LAN has introduced more flexibility in all fares, for example the airline introduced the opportunity to change your flight at the airport without penalties even the during the day of travel by any LAN flight.
At the airport: More auto check -in machines was installed in the majority of the airport of Chile and Peru. The 64% of LAN passengers make the check-in process using on line check-in at www.lan.com or in the auto check-in machine installed at the airport.
Catering has been modified according of hour and duration of each flight. The most short haul flight LAN offers a light catering replacing the traditional "airline meal" with common products with a good reception. To offer the light catering LAN has subscribed different agreements with different suppliers in Chile, Argentina and Peru. For example in the LAN Argentina domestic flight you can find the traditional alfajores Havanna.
The implementation of the LASER model allows to reduce cost in 30%.
The Fleet:
The LASER model need a common fleet, in this case based in the A320 family. Until this day almost all short and medium flights are operated by the modern A320. In all A32S (excepting 3 A320 CC-COD, CC-COE, CC-COF) are configured with a single class (3-3 configuration) offering a similar products of the intra european flights. 12 A319 and 1 A320 has new interiors. By the end of 2008 all A32S aircraft will be configured with a single class with a new and comfortable interior to improve "the experience of travel". Also the long haul fleet will be reconfigurated with the new Premium Business and new Economy, including the A340s.
LAN has added new aircrafts specially newest Airbus A319 and more Boeing 767-300ER. Also in June the company added its first A318-100. The capacity was increased in 21% compared with 2006 and for 2008 it will be increased until 30%.
To bring more flights LAN has increased the block hours of the aircrafts from 8,4% in 2006 to 10,4% in 2007 using its multiHUB model (SCL, LIM, EZE/AEP, GYE). The company expects to increase the block hours until 12 in 2008.
During the next months (until December 2008) LAN will add 30 new aircraft into its fleet, including 15 A318 ( probably it will be changed to A319), 4 A320, 2 Boeing 767-300ER and 1 Boeing 777-200F. Because the engine problems of the new PW6000 and the small underfloor capacity LAN will introduce only 5 A318 at this moment, considering also to replace the A318 modifying the order in favor of 15 A319.
After 2009 LAN will introduce 15 A32S (maybe 7 A319 and 8 A320) 3 Boeing 777-200F. Between 2011 and 2013 LAN Airline will receive its newest Boeing 787-9, the rest 26 Boeing 787-8 will be introduced from 2015 until 2017.
LAN Fleet Summary until 2011:
2007: 5 A318, 15 A319, 13 A320, 5 A340-300**, 3 Boeing 737-200Adv. 22 Boeing 767-300ER, 9 Boeing 767-300F
2008: 5 A318, 30 A319, 13 A320, 8 A340-300**, 26 Boeing 767-300ER, 9 Boeing 767-300F, 1 Boeing 777-200F.
2009: 5 A318*, 37 A319, 21 A320, 8 A340-300**, 28 Boeing 767-300ER, 9 Boeing 767-300F, 2 Boeing 777-200F.
2010: 5 A318*, 34 A319, 18 A320, 8 A340-300**, 28 Boeing 767-300ER, 9 Boeing 767-300F, 2 Boeing 777-200F.
2011: 5 A318*, 37 A319, 21 A320, 8 A340-300**, 28 Boeing 767-300ER, 9 Boeing 767-300F, 4 Boeing 777-200F, 2 Boeing 787-9
(*) The A318 probably will be replaced by more A319.
(**) The A343s probably will be retired after 2011.
LAN also is considered to add the Boeing 777 (maybe 6 or 8) for passenger to replace the A343 in long haul routes specially from Chile and Argentina to Europe and Oceania. However the decision about the B777 depends if the results of the B772F on LAN Cargo, so is probably that in 2009 LAN decide or not to introduce the Triple 7.
1- An extensive network within the Americas, focalized in the regional market (Chile, Argentina, Brazil and Peru). Increase the alliances with key partners (OW or others) to expand the network to different regions. For Cargo increase cooperation with others cargo airline.
2- High efficiency based in a common an optimal fleet formed by two models: short haul A320 family and long haul Boeing 787s and maybe a few number of B777s. All combined with a high utilization of the fleet, 12 hours a day.
3- A professional team: two equal important business units and an integrated approach to every decision.
Good results in 2nd quarter 2007 (in US$ millions)
So, the PW6000's woes persist, contrary to claims that those had been solved. Doesn't bode well for the engine's future.
Quoting RJ_Delta (Thread starter): and the small underfloor capacity LAN will introduce only 5 A318 at this moment, considering also to replace the A318 modifying the order in favor of 15 A319.
The powerplant issues as well as the plane's operating economics are unavoidably driving the switch to the A319.
Quoting RJ_Delta (Thread starter): including 15 A318 ( probably it will be changed to A319)
It will be interesting to see if other airlines, charter operators, conglomerates, governments or wealthy individuals would pick up (I hope they would) these 15 A318s should LAN actually convert their order. In that case, this might be the last airline buy for this model.
PHKLM From Northern Mariana Islands, joined Dec 2005, 1198 posts, RR: 3 Reply 2, posted (4 years 6 months 3 days 22 hours ago) and read 4434 times:
Great post RJ_Delta!
LAN is by far my favorite Latin American carrier; I flew 5 segments with them this summer (your winter) and every single flight was great and memorable;
LA466 EZE-SCL A340
Check-in at EZE broke down, so LAN checked in all pax thru a phone connection with SCL; despite the heavy load on the A340, this went super smooth, with a genuine smile and the flight left on-time despite the fact all boarding passes and luggage tags had to be hand written! Kudos for the LAN staff at EZE. Flight on the A340 uneventful, nice IFE and breathtaking view over the moonlit Andes. Snack service with tasty sandwich on 2hr afternoon flight.
LA841 SCL-IPC B763
Brand new 763 with excellent AVOD system.
LA842 IPC-SCL B763
Flight delayed for 5 hours, LAN called me in the morning to inform me about the delay and free snack+drink was offered in the (small but cute) terminal of IPC. Once on board, very pleasant flight on a new 763, again not enough time to explore all the possibilities of the AVOD system. Full meal service including alcoholic drinks; very pleasant staff.
Unfortunately for me, the flight arrived in SCL at midnight, when all LAN check-in counters where closed and all flights to EZE had left. Without even asking for it I was put in the Crown Plaza Hotel in SCL and escorted out of the airport to a waiting taxi. Amazing experience for a backpacker paying a Y restricted fare
LA1447 SCL-EZE A320
A little older A320, but still very well maintained from the inside for a very early morning flight to EZE, after being picked up from the Crown Plaza. Decent breakfast service for this 2hr flight. As this flight was part of a SCL-EZE-GIG trip, with the second segment on JJ, I asked my bags to be checked through. The LAN staff at SCL was unsure about the possibilities of checking my bags through on JJ, but instead of simply saying "impossible" the person checking me in asked a few colleagues and after being assured it would work she checked my luggage all the way to GIG.
LA4201 COR-AEP A320
After having flown this route last year on 4M's LV-BOB (an ancient B732), LAN Argentina's fleet now consists only of A320's. The plane looked very well kept from the inside and staff was very professional. I have to admit they seemed to have cut the free wine and beer service on 4M domestic flights; but who cares when the flying time is less than 50 min.
As said, I have been very pleased with LAN; the service is very consistent across the network, be it on the ground or in the air. I am sure a lot of people will always have complaints about this company, but you have to admit LAN acknowledges the threat of companies like 3G and is definitely taking the right measures to stay or become the travvelers' choice.
Arcano From Chile, joined Mar 2004, 2364 posts, RR: 32 Reply 4, posted (4 years 6 months 3 days 2 hours ago) and read 4171 times:
Great review, thanks as usual.
I'm old fashion and like the service, so not very fan of this new super cost efficient in flight services (no not even newspaper), but I do admit thay I've got very, very good fares...
Cheers to Lan
in order: 721,146,732,763,722,343,733,320,772,319,752,321,88,83,744,332,100,738, 333, 318 and 77W
Avion660 From United Kingdom, joined Jan 2007, 147 posts, RR: 0 Reply 5, posted (4 years 6 months 2 days 20 hours ago) and read 4118 times:
RJ, great review! I'm also a fan of your blog too.
I also agree with this quote,
Quoting PHKLM (Reply 2): LAN is by far my favorite Latin American carrier,
and I can report a happy experience on a long delayed flight in Madrid too.
Quoting RJ_Delta (Thread starter): after twelve month the LASER model is a great success for LAN and for its passengers,
A success for passengers too? I cannot agree on the fares being great value before LASER, and it appears even now this continues. Last year, just before LASER came into operation I was off to Chile, and since I try and use One World all the time and was already on LA tickets from London I tried to organise SCL- CJC one way fllights. It was impossible to get anything sensible at all with LA, even thinking of return flights and only using the first portion (I thought, maybe it's a businessman thing to Calama). So today I tried to see what SCL-CJC costs 8 weeks ahead of today (the time that I tried to organise in 2006) and 12 weeks ahead. Maybe cheaper with new model now?
Guess what:
Lan: single USD313 return USD572 (both 8 and 12 weeks ahead)
Aerolineas del sur (who I did fly with in 2006, and were very good too): USD 87 single/ USD196 return (USD174 return with 12 weeks notice). I like 737-200's and a stop in ANF as well! No contest then.
This is for the same dates in either October or November. Now, I'm a fan of Lan, but that's one heck of a price difference! I could suggest that what is good for the airline may not always be good for the customers!
UPPERDECKFAN From Spain, joined Jun 2007, 992 posts, RR: 1 Reply 6, posted (4 years 6 months 2 days 19 hours ago) and read 4096 times:
Quoting RJ_Delta (Thread starter): LAN also is considered to add the Boeing 777 (maybe 6 or 8) for passenger to replace the A343 in long haul routes specially from Chile and Argentina to Europe and Oceania
How are they going to overcome ETOPS restrictions in the South Pacific? today South America-Australia has to be done on 4 engines.
That's right. Now the passenger can find cheaper tickets in all routes.
For example a LAN tickets comparison before/after LASER model:
Before LASER With LASER
CONCEPCIÓN $55.900 (USD$107.7) $39.900 (USD$76.8)
TEMUCO $64.900 (USD$125.0) $44.900 (USD$86.5)
PUERTO MONTT $75.900 (USD$146.2) $49.900 (USD$96.1)
LA SERENA $53.900 (USD$103.8) $39.900 (USD$76.8)
IQUIQUE $89.900 (USD$173.2) $64.900 (USD$125.0
Quoting Avion660 (Reply 5): I tried to see what SCL-CJC costs
Today the cheaper roundtrip fares to CJC (Calama) is USD$ 172.58 (with taxes).
Quoting UPPERDECKFAN (Reply 6): How are they going to overcome ETOPS restrictions in the South Pacific? today South America-Australia has to be done on 4 engines.
LAN expects the approval of 330 ETOPS to start flight to South Pacific. At this moment the flight to AKL-SYD will keep with A340 until this model leaves the fleet.
RJ_Delta From Chile, joined Oct 2000, 1904 posts, RR: 16 Reply 10, posted (4 years 6 months 2 days 2 hours ago) and read 3863 times:
Quoting PU752 (Reply 9): Somehow LA downgraded MVD from 9 to 7 weekly freqs, loads must've been bad
The 9 weekly frequencies between SCL and MVD were because winter season (vacations). Now LAN operates its daily service to Montevideo with Airbus A319/A320 from Monday to Saturday and B763 on Sunday.
RJ_Delta From Chile, joined Oct 2000, 1904 posts, RR: 16 Reply 12, posted (4 years 6 months 2 days ago) and read 3816 times:
Quoting Alangirvan (Reply 11): Will LAN codeshare on the QF flights to SYD? Will there be LAN flights to connect QF passengers to EZE, GRU and other cities?
LAN and Qantas operations to Australia are ruled by a biletaral Agreement between Chile and Australia. Qantas announced operations to SCL from November '08 and according with the information given by LAN they will continue to offer daily flight to AKL-SYD. I suppose that they will continue the codeshare agreement with QF. For the rest of the destination, specially in South America the bilateral Agreement allows to QF extends its service to a third destination with a 5th freedom in SCL. So is probably that QF will expand its service using the LAN network.
Avion660 From United Kingdom, joined Jan 2007, 147 posts, RR: 0 Reply 13, posted (4 years 6 months 1 day 21 hours ago) and read 3782 times:
Quoting RJ_Delta (Reply 7): Today the cheaper roundtrip fares to CJC (Calama) is USD$ 172.58 (with taxes).
RJ, your reply was very interesting and a lesson to me: never visit www.lan.com, instead always go to www.lan.cl ! Tiene razón: USD172, ida y vuelta.
Another thing. when on www.lan.cl don't tell the Chilean website that you live in Europe, the UK, Argentina, Germany or anywhere but Chile (not even Bolivia!): back comes USD572 every time! Interesting, I haven't come across such dual pricing on an airline website before. One to remember. Cheers.
UPPERDECKFAN From Spain, joined Jun 2007, 992 posts, RR: 1 Reply 14, posted (4 years 6 months 1 day 20 hours ago) and read 3768 times:
Quoting RJ_Delta (Reply 12): For the rest of the destination, specially in South America the bilateral Agreement allows to QF extends its service to a third destination with a 5th freedom in SCL. So is probably that QF will expand its service using the LAN network.
I'm missing something?
If QF have 5th freedom out of SCL why are they going to use LA network instead of their own metal? If so wha's the deal with having 5th freedom?
Flying-Tiger From Germany, joined Aug 1999, 4070 posts, RR: 46 Reply 15, posted (4 years 6 months 1 day 19 hours ago) and read 3757 times:
LAN has just signed a support contract with Lufthansa Technik for up to 129 A32X and 8 A340s, valid for the next 12 years. Support to be at Santiago, Buenos Aires and Lima. Should give a good hint at the next fleet decisions: far more A32X and the A340s are likely to stay.
RJ_Delta From Chile, joined Oct 2000, 1904 posts, RR: 16 Reply 16, posted (4 years 6 months 1 day 15 hours ago) and read 3700 times:
Quoting UPPERDECKFAN (Reply 14): If QF have 5th freedom out of SCL why are they going to use LA network instead of their own metal? If so wha's the deal with having 5th freedom?
At this moment QF has announced service to Santiago only in South America. However the bilateral agreement gives to Qantas 5th freedom rights to others countries plus routes to three cities in Chile. For LAN the Agreement allows to fly to Sydney and three others countries plus routes to three cities in Australia.
Quoting Flying-Tiger (Reply 15): LAN has just signed a support contract with Lufthansa Technik for up to 129 A32X and 8 A340s, valid for the next 12 years. Support to be at Santiago, Buenos Aires and Lima. Should give a good hint at the next fleet decisions: far more A32X and the A340s are likely to stay
The A340 will leave the LAN fleet in a couple of years in favor to Boeing 787-9 and probably the Boeing 777s. Until the end of 2008 LAN has leased four second hand A340s (one arrived the last month the CC-CQG ex Air Canada C-FYLC) to expand the longhaul route in the short term. LAN is very unhappy with its A340 too.
Hardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 56 Reply 17, posted (4 years 6 months 1 day 15 hours ago) and read 3688 times:
Quoting RJ_Delta (Thread starter): Also the long haul fleet will be reconfigurated with the new Premium business and new Economy, including the A340s
Could anyone provide with with an update on LAN introduction of its new business class in its B767 fleet?
In fact the new business class meant that LAN decided to blend its first and business class, leading to the phase out of the first class, in line with market trends.
As far as I know, so far 12 x B767 have been upgraded with the new business class. Anyone knows teh routes and whether LAX-SCL nosntop has the new business class?
The Premium Business is offered in the Boeing 767-300ER for the next year the A340 will be equipped with the new Premium Business and new Economy. Actually the CC-CQA has a retrofit Economy Class but keep the old Business/First. The "new" A340-300 CC-CQG is on maintenance now here in Santiago and probably will be the first A340 equipped with the new classes. By the end of 2008 all longhaul fleet will be equipped with the new classes.
Quoting Hardiwv (Reply 17): In fact the new business class meant that LAN decided to blend its first and business class, leading to the phase out of the first class, in line with market trends.
Actually offers two classes Business and Economy. First is not offered from July 2006.
Quoting Hardiwv (Reply 17): As far as I know, so far 12 x B767 have been upgraded with the new business class. Anyone knows teh routes and whether LAX-SCL nosntop has the new business class?
PU752 From Uruguay, joined Mar 2005, 578 posts, RR: 1 Reply 21, posted (4 years 6 months 1 day 12 hours ago) and read 3623 times:
Quoting RJ_Delta (Reply 10): The 9 weekly frequencies between SCL and MVD were because winter season (vacations). Now LAN operates its daily service to Montevideo with Airbus A319/A320 from Monday to Saturday and B763 on Sunday.
Oh that makes sense.....the 763 its been operating on sundays for a long long time now...
A little off topic but Im wondering if G3 is still have in mind the MVD-SCL tag.
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