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Word Count: 1,321
1 Introduction LAN Chile was the most successful Latin American airline of the late 1990s Despite upheaval in the industry and failures of several other airlines in the region LAN Chile had a record of success and international expansion that were the envy of the industry The least aviation news report has shown that the success of Chiles flagship airline LanChile which tripled third-quarter profits from a year ago is due to a deregulated air traffic market efficiency and concentration on international flights This report aims to fulfill the following objectives 1 Evaluate the success of LANs strategy so far Strong points Risks 2 Give opinion on the last section of the case Challenges to Lan a How can they grow further under the constraints given b Is the relationship with American Airlines a good thing for LanChile Going forward or not Why what are possible alternatives 2 Question1 Considering Evaluate the success of LANs strategy so far Strong points Risks The leaders of LAN Chile have set up a serial strategy for companys panoramic future plan These goals are being pursued actively since the mid-1990s with significant success in building the cargo leadership with a hub in Miami and in linking with American Airlines and the One World Alliance However LanChiles management is a key to its success With slack demand in the domestic market the companys strategy has focused on international flights that account for 85 percent of revenue Lets carry out an analysis using the Strong points and risks framework helps us to focus on what are the strong points and risks for LanChile strategy 21 Strong points aMission Management of LAN Chiles has set up a very clear mission bOwnership Ownership was simplification LAN Chile had completed privatization in 1994 before the strategy was established c Strong Brand awareness In 1998 Travel Leisure Magazine rated LanChile as the Best Passenger Airline between North
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