I think there are 2 ways for analysing this issue.
1. If Land Peru marketed itself as a "100% Peruvian Carrier" or "Flag Carrier" then you have a point there: LP
cheated Peru by using Chilean aircraft and crew. Big mistake; it was an outrageous lie.
always admited they were Chilean and never appealed to the "Peruvian Pride" for selling tkts (as N6
did). Then there's nothing wrong, LP
just filled the gap left by any truly national carrier of Peru.
Does anybody know which marketing strategy did they follow?
Actually, I'm not sure if I told this to you or not (maybe to ZXV), whatever, but the point is that someone on this site said once that LP
would become the flag carrier for Peru. My answer is that LP
will never be a proper flag carrier, because they are not Peruvian!
a good national carrier, not like N6
of course, and LP
could be a perfect "second player", being part of the whole LAN network. The same for Ecuador, Argentina, Paraguay, Zimbabwe or any country LAN get to land; I think to pretend to be the national carrier of any foreign country is a mistake.
Specially in the case of Peru, I think Peruvians are a very proudly people, so they have the right, they deserve a truly 100% Peru airline as they want! all I say is that let's play fair. Any mistake made by LAN should be punished, as LAN is sometimes in Chile when they overcharge fares in routes with no competition (some of their prices are regulated).
Miamix707: Again, I will have to go "all smart"
In my opinion, Chile in aviation behaves as a natural monopoly, this is why I think only one
airline has been sustainably efficient - Lan Chile-, and competition for LAN have been a rotation of players: Ladeco, DAP, National, Avant, ALTA, Aerocontinente, SKY
Since you seem to be very well informed about the differences between a Monopoly and a Natural Monopoly (where population/market
has the size only for paying the high fix costs for one
offerer) you'll understand why Chile hasn't been able to sustain 2 players in the market, and how come the the most stable Latin American economy
(using your words) has only 1 airline reaching MIA
. It's all about market size = population!
Again, South America as a whole has enough population
to pay the fix costs for more players, so we are not talking about a natural monopoly, and this is why your idea of LAN becoming the only actor in the continent is, let's say, inaccurate. Market size (=population) has A LOT to do in monopolistic behavior of markets. This is why LAN prices are regulated by Chilean authorities where there is no competition.
If LAN got their way and you know they'd love to, there is a possibility ...that we could see LAN being the dominant player in S.America
Well, in this one we agree. LAN is indeed a very tough competitor, and sometimes too tough, remember we Chileans have lost some good services (as non stop SCL
) since they almost expelled CO
. I'm still praying they won't start to fly to Atlanta!
How could you compare P&G with Airlines?
Big news: they are both business
, looking to get earnings over the investment. Who told you the opposite???
Never heard of Carrefour? French company, the world's second largest retailer, after Wallmart. Now I see how well informed are you for talking about business. You'll see, Consumer goods, Airlines, Electronics, etc. have different logistics, process, etc. But in a very simple way to say it they are looking for money, so they try to grow, expand.
Under these very rough principles you can compare them for making a point, as I did. You asked why LAN needed to get their hands abroad: the answer is simple, and shared by the companies I listed: EARN MONEY, GET RETURNS OVER INVESTMENT (ROI, a very key financial number...)
like your some expert or something
A 5 years degree in economics does give me some background for talking about business, as I mostly do in A.net. And yes, Chileno y Orgulloso! Besides, who said LAN wanted to be the most beloved company of the Americas, do you think LAN pretends to be perceived as a blessing? Come on! What National Carrier LAN took over? If LA
had got to buy AV
, and then change it to Lan Colombia, you'd be right, Colombians should have all the right to "hate" LAN as we do with IB
that killed Ladeco. But LAN, so far
have expanded based on setting new airlines, not taking control of national carriers and making them dissapear.
And don't take Chileans wrong, sometimes we
are the most interested in having competition for LAN, which BTW sometimes forgets that it was born in Chile (can't wait for Aerolineas to finally take off).
Don't take it as a personal attack, I just replied your opinions. I see your point was LAN becoming dominant player and not the only one. But I was not the only one that took your words "only major" wrong.
in order: 721,146,732,763,722,343,733,320,772,319,752,321,88,83,744,332,100,738, 333, 318, 77W, 78, 773, 380, 73G, 788, 789, 346