- LAN has fully complied with its self regulatory fare plan and has provided all information required by the TDLC in a transparent, timely and accurate manner;
- On September 26, 2011, through ORD. No. 422, the Junta de Aeronáutica Civil (JAC), Chile’s civil aviation authority, requested that LAN send all information provided to the TDLC related to compliance with its self regulatory fare plan;
- LAN, in a letter to the JAC dated September 28, 2011, sent all the required information in the same manner as it had been submitted to the TDLC. The information LAN submitted to the JAC included the request to correct the calculation errors presented to the TDLC on September 27;
- Through ORD. No. 438 dated September 28, 2011, and addressed to the President of the TDLC and with copy to LAN, the JAC states that “after revising the information, it is the opinion of this General Secretary that the TDLC did not use the correct methodology to calculate the yields. In this sense, we can indicate that the most significant calculation error results from not prorating the fares by the flown segment, which is fundamental to obtain the revenues per kilometer. Not prorating strongly overestimates the results;” and
- Considering the foregoing, LAN reaffirms that the calculations provided to the TDLC are correct and confirm that air travel in Chile is on average cheaper than in the United States, a recognized competitive industry.
On this date, LAN has published on its website ( www.lan.com), as required by its Relevant Information Disclosure Policy, the following documents:
- Letter No. 422 dated September 26, 2011 from the JAC to LAN;
- Letter from LAN to the JAC dated September 29 (SIC) 2011, received by the JAC on September 28;
- Document submitted by LAN to the TDLC dated September 27, 2011, requesting the correction of calculation errors in its ruling dated September 21 in the context of LAN’s self regulatory fare plan; and
- Letter No. 438 dated September 30, 2011 from the JAC to the President of the TDLC and distributed to LAN.
ADDITIONAL INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT:This press release relates to a proposed business combination between Lan Airlines S.A. (“LAN”) and TAM S.A. (“TAM”), which will become the subject of a registration statement and prospectus to be filed with the SEC by LAN and a new entity to be formed in connection with the combination. This press release is not a substitute for the registration statement, prospectus and offering materials that LAN and the new entity will file with the SEC or any other documents that they may file with the SEC or send to shareholders in connection with the proposed combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROSPECTUS, EXCHANGE OFFER DOCUMENTS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION. All such documents, if filed, would be available free of charge at the SEC’s website ( www.sec.gov) or by directing a request to LAN Investor Relations, at 56-2-565-8785 or by e-mail at email@example.com, or to TAM Investor Relations, at 55-11-5582-9715 or by e-mail at firstname.lastname@example.org.