LAN Airlines S.A. (NYSE: LFL / IPSA: LAN), announced that a Board Meeting held today analyzed the resolution of the Tribunal de Defensa de la Libre Competencia (TDLC), Chile’s antitrust court, regarding the merger between LAN and TAM, including the impact of the mitigation measures it imposed. The company confirms that during the course of this week it will continue to analyze said measures, their impact and effects.
As part of its analysis, the Board of Directors has considered it necessary to clarify that LAN is in compliance with the self-regulatory fare plan, as is effectively also recognized by the TDLC, and that it has provided in a transparent, timely and accurate manner all information that was required by the Antitrust Court.
Today, the company also filed a request before the TDLC requesting it to correct a series of numerical calculation errors that appear in the referred resolution which derived in affirmations and conclusions, currently of public concern, which affect the reputation of the company and its employees.
The resolution contains errors regarding the numerical calculation of LAN’s yields (revenues per passenger-kilometer on each route), which result in the TDLC questioning the information delivered by the company to the TDLC as well as to the Junta Aeronáutica Civil, Chile’s aviation authority, in the framework of its self-regulatory fare plan. Such errors led the TDLC to significantly overestimate both the yields and the revenues generated by the routes included in their calculations, questioning the conclusions of specialists’ reports commissioned by LAN and presented to the TDLC to demonstrate the company’s affirmations that its fares on domestic flights within Chile are on average lower than those in the United States domestic market.Finally, LAN highlights that, considering its ongoing analysis and the course of action it may pursue, the company continues advancing with the actions necessary to complete the transaction and is confident to conclude the merger process with TAM during the first quarter of 2012.
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