LAN AIRLINES Presidente Riesco 5711, piso 3, Santiago, Chile (56 2)

Transcription

1 LAN AIRLINES Presidente Riesco 5711, piso 3, Santiago, Chile (56 2)

2 An overview of LAN Airlines Note: The following document contains general information about the company and its affiliates, which can be used as support in future publications. The information is current to septembrer 2013 and is considered public. About LATAM Airlines Group PERSONNEL: More than employees. FLEET: 307 passenger planes Airbus 340: 3 Airbus 330/321/320/319: 240 Boeing : 42 Dash 8-200/Dash 8Q400: 9 Boeing : 6 Boeing 787: 3 Boeing 777: cargo planes: Boeing F: 12 Boeing 777F: 4 - One of the newest and most modern fleets in the industry, with an average of 6. 7 years.

3 First in Latin America to receive the Boeing 787 Dreamliner: in September 2012, LAN received its first Boeing 787, which is part of an order for 32 aircraft to be incorporated gradually. This aircraft is the most modern of its kind in the world that consumes up to 20% less fuel and reduces by up to 40% of ambient noise footprint on takeoff. LAN Airlines is one of the first in the world and the first in Latin America to fly the Boeing that has revolutionized revolutionize the airline industry to incorporate the latest technology: Innovative, modern and harmonious design. Electronic dimming of the windows and dynamic lighting that create a better lighting atmosphere. At the same time, preparing the passenger for the different stages during the flight (day, night, etc.) and for the time zone to which they are arriving. Larger windows with a surface area 40% greater than today, which will allow all passengers better visibility during the flight, and a better view. 30% more storage space for carry-on luggage. The aerodynamics and technology reduce the effects of turbulence on passengers. In addition, the cabin is pressurized to a lower altitude (6,000 feet instead of 8,000), which will result in the reduction of headaches or other symptoms a passenger might experience. New air humidification techniques reduce fatigue and dryness associated with long trips. The passenger may have a more enjoyable trip thanks to technology in the engines that make them less noisy, generating less noise impact inside the cabin and outside the aircraft. - Between 2017 and 2018 LAN will receive 20 Airbus A320neo planes, with a more ecological operation. More efficient engines. Aerodynamic devices called "Sharklets".

4 Up to 15% fuel savings among other benefits. They will be delivered between 2017 and By 2020, more than 100 new aircraft are expected. - Installation of winglets on all Boeing 767 fleet: in 2011 CO2 was reduced by 113,000 tons by this method. NETWORK OF DESTINATIONS: Long-haul flights: North America, Europe and South Pacific. Regional flights: Inside South America. Domestic flights: Within Chile (since 1929), Peru (since 1999), Argentina (since 2005), Ecuador (since 2009) and Colombia (December 2011). - More than 750 destinations in the world (100 of them are operated directly by LAN and its affiliates). Destinations: o Long Haul: Miami New York San Francisco Los Angeles Mexico Cancun Habana Madrid Frankfurt Auckland Sidney Easter Island Papeete Paris

5 Punta Cana o Regional: Buenos Aires (Ezeiza/Aeroparque) Cordoba Mendoza Montevideo Sao Paulo Iguazu Falls La Paz Rio de Janeiro Brasilia Lima Bogota Guayaquil Santa Cruz de la Sierra Rosario Caracas Quito Cali Cartagena Medellin o Domestic Chile: Santiago Concepcion Temuco Osorno Valdivia Chiloé Puerto Montt Punta Arenas Balmaceda La Serena Copiapo Iquique Antofagasta Calama Arica Isla de Pascua o Domestic Argentina: Buenos Aires (Aeroparque/Ez eiza) Bariloche Comodoro Rivadavia Cordoba El Calafate Iguazu Mendoza Neuquen

6 Rio Gallegos Salta San Juan Tucuman Ushuaia Bahia Blanca o Domestic Peru: Arequipa Cajamarca Cusco Chiclayo Iquitos Juliaca Lima Piura Pucallpa Puerto Maldonado Tacna Tarapoto Trujillo Tumbes o Domestic Ecuador: Guayaquil Quito Cuenca Galapagos Santa (Cruz/Santa Cruz) o Domestic Colombia: Cartagena Barranquilla Santa Marta Bucaramanga Monteria Apartado Armenia Manizales Pereira Cucuta Ibague Letizia Neiva Puerto Asis Quibdo San Andres Valledupar Villavicencio Cali Medellín Yopal

7 LANPASS: More than 7 million LANPASS members in the world. oneworld: An alliance that brings together the 13 biggest and best airlines in the world. - More than 750 destinations. - Almost 150 countries affiliate airlines. LAN CARGO: CHARACTERISTICS: - More than 80 years of experience in transporting cargo. - Differentiating characteristics in efficiency, coverage, service quality, reliability and experience. - Headquarters in Miami, one of the five most important cargo airports worldwide. - Cargo operator in 3 main points between the U.S. and Europe, and 34 destinations in Latin America, making it the largest cargo company in the region. - One of the most modern fleets in the world. - Transporter of the main products of the region such as: flowers, asparagus, salmon and blueberries, among others. - In 2010, LAN inaugurated the largest and most modern cold warehouses of an airline in the U.S. (Miami) and in July 2011, the most modern warehouses in Latin America, in Columbia.

8 CARGO TRAFFIC: - Around 40% participation in the international cargo traffic of Latin America. - More than 870,000 tons of cargo transported during the year. CARGO FLEET: 4 next generation Boeing 777 planes,2 with the aim of strengthening the longhaul routes. 12 Boeing 767F AFFILIATES OF LAN CARGO: Brazil: ABSA (Marketed under the brand TAM) Colombia: LANCO Mexico: MASAIR LAN AND THE ENVIRONMENT - - Modern fleet with an average of 6.7 years. - Measuring of the carbon footprint of the company.

9 - Recycling on land: more than 1,000 tons of waste recycled through this program annually. - Operational efficiency (LEAN): Reduces 100,000 tons of CO2 annually. - E-freight: A program that reduces paper use in the processes of LAN CARGO. More than 7,800 tons of paper documents are reduced each year. LAN AND TOURISM - LAN develops tourism in South America, connecting the major tourist destinations in the region with the world, allowing thousands of South Americans to visit them in addition to bringing the region to other countries. - The company has the largest tourist circuit of South America, connecting directly to the most attractive places in the region, such as The Galapagos Islands, Easter Island, Cusco, Iguazu, San Pedro de Atacama, among others. - Corporate Social Responsibility Program of LAN "Cuido mi Destino", which promotes tourism awareness in the communities where the company operates, through the recovery of public spaces. 3 consecutive years in each destination sensitizing students, workers and local entrepreneurs. - Since its launch in 2009, LAN s top CSR program Caring for my Destination has recovered more than 20 areas with tourism value, in 10 cities across the continent. By 2015, it expects to realize 63 recoveries of 25 different destinations in the region, mobilizing 5,000 young students, so that future generations can enjoy the same attractions.

10 TRAVEL EXPERIENCE WITH LAN - The service on board LAN is specially designed to provide the passenger with a better travel experience. - LAN has three classes on board depending on the model of the aircraft: Premium Business, Premium Economy and Economy: Premium Business on LAN: Service based on providing rest, with full flat seats, 100% horizontal. Menu designed by a renowned chef panel that incorporates natural products characteristic of the South American region. Wine list selected by the only Master Sommelier in Latin America, Hector Vergara. The best entertainment on board: Each seat features a 15.4 inch highresolution screen and an audio-video system that can be used freely. There is a repertoire of 47 films (8 new releases and 39 classics), 123 channels of TV series, 750 music CDs and 20 games. A Bvlgari amenity kit. Premium Economy: Designed to take advantage of the passengers time. For greater convenience, this class has a universal outlet for charging computers, ipods, DVD players or video games. This class was specifically designed to respond to what business travelers value most on short flights: Caring for your time and excellent service. In this class you can take complete advantage of a premium

11 service, flying Economy: VIP lounge access, front row seat with the middle seat blocked, preferential check-in and boarding, preferential disembarkation and baggage claim, Premium Business service on board, 125% accumulation of LANPASS kilometers and an increased baggage allowance (3 pieces of 23 kg each). Economy: On-board entertainment services on all long-haul flights: latest releases in movies that include a selection of South American movies, games and more than 750 music CD s. Ergonomically designed seating, reclining with adjustable headrests, to make passengers more comfortable.

12 TEMA LAN TAM LATAM LATAM in Numbers

13 Fleet 319 Flight purchase order Employees Más de 55 mil empleados Daily flight average vuelos al día Passenger Destinations 150 destinos (con superposición incluida) Countries países (con superposición incluida) Regional operation AR, CL, EC, COL, PE BR AR, CL, EC, COL, PE,BR Passengers transported Passengers transported from the USA to South America 63,5MM Passengers transported from the EU to South America Frequent Flyer Program Nace en 1984 Nace en 1993 Members 7,0 millones de socios 10,5 millones de socios 17,5 millones de socios en el mundo CARGO FIGURES Cargo Destinations 169 Countries 27 Fleet 16 aviones cargueros

14 LAN AIRLINES HISTORY 1929: The Company begins operations. 1946: First flight to Argentina. 1958: First flight to the U.S. 1964: Incorporation of the first jet aircraft. 1970: First flight to Europe. 1989: Privatization of LAN Airlines. 1994: Acquisition by the existing shareholders. 1997: Listed on the New York Stock Exchange ( LFL ) 1998: Beginning of the fleet renovation program with the Boeing 767 cargo aircraft. 1999: Beginning of LAN Peru operations. Commercial alliance with American Airlines. 2000: Incorporation into oneworld alliance, comprised of the world's leading companies. Renovation of fleet program includes 27 Airbus passenger aircraft. 2001: Inauguration of the new cargo terminal in Miami, one of the largest facilities that a foreign airline has in the U.S. Includes export and import terminals, cold storage, warehouses and offices. Commercial alliance with Iberia. 2002: Commercial alliance with Qantas. Commercial alliance with Lufthansa Cargo. 2003: Beginning of LAN Ecuador operations. 2004: Launch of new corporate image: LAN Airlines SA ("LAN ) 2005: Beginning of LAN Argentina operations. Approval of orders for 44 aircraft.

15 2006: Introducing the new Premium Business Class. 2007: Launch of the "Nueva forma de viajar" on domestic routes in Peru and Chile. Capital increase by $ 320 million. Orders for 32 Boeing 787 Dreamliners and 4 Boeing 777 freighters. 2008: Renewal process of short haul fleet finishes with the retirement of the last Boeing The company operates only the new Airbus A320 family on domestic and regional routes. Its fleet is one of the most modern in the world. National Council of Civil Aviation of Ecuador authorizes the start of operations of LAN Ecuador in the domestic passenger market. Aeronautical Authorities of Colombia authorize the creation of the new LAN CARGO subsidiary in that country. 2009: 80 years of operation of LAN. Start of new cargo operations in Colombia and domestic passenger operations with LAN Ecuador. Arrival of two Boeing 777 freighters. Purchase orders for 30 Airbus A320 family aircraft. 2010: Agreement to acquire 50 modern Airbus A320 family aircraft. LAN and TAM signed a non-binding Memorandum of Understanding (MOU) in which they agreed to carry out their intention to combine their businesses under a single parent entity. Start of route to San Francisco from Lima. LAN Airlines began operations from Madrid to Paris. In November 2010, LAN acquired the Colombian airline, AIRES. 2011: Purchase order for 20 eco-efficient Airbus 320neo aircraft, which will join the fleet starting in Launch of accounts in social networks: Twitter and Facebook, to be closer to customers. Opening LANCO warehouses in Colombia, one of the safest and most modern warehouses in the region. Beginning of LAN Colombia operations. 2012: LAN performs made the first commercial flight in South America using second generation biofuels (between the Chilean cities of Santiago and Concepcion).

16 In June, LATAM Airlines Group was born after the merger between LAN Airlines and TAM Airlines. LAN is the first airline in the Americas to receive and operate the Boeing 787.

17 ANNEXES: I. Overview of the fleet. II. LAN Maintenance Base. III. Crew Training Center. IV. Flight Simulators. V. Passenger and Family Support.

18 I. Overview of the Fleet Airbus Manufacturer: Airbus Industries. It was the first commercial aircraft with controls completely fly-by-wire, with which the pilot controls the moving parts of the plane with a joystick through a computer system, instead of levers and hydraulic systems. From this model versions of lower fuselage were derived, A318 and A319. The A320 was launched in 1982, first flew in 1987 and began commercial operations a year later. - Date this model joined the LAN fleet: October Airbus Manufacturer: Airbus Industries. Member of the A320 aircraft family. Its controls are fly-by-wire and it is almost identical to thea320, except that the fuselage is shorter and has more duration (having the same fuel tanks as an A320, but fewer passengers). First flown in 1995 from Hamburg, Germany. - Date this model joined the LAN fleet: December Airbus Manufacturer: Airbus Industries The smallest and newest member of the A320 family. It was released in 1999 and began commercial operation in Like the A320, it is piloted with fly-by-wire technology

19 with which the moving parts of the plane are controlled with a joystick through a computer system. - Date this model joined the LAN fleet: May Airbus Manufacturer: Airbus Industries. Aircraft with four engines and wide-body, the A was designed to meet the market needs of 300 passengers and long haul. Launched in 1987, the aircraft has a range of over 13,700 km, so it is aimed at long distance and high occupancy. Began commercial operation in 1993 with Lufthansa and Air France. - Date this model joined the LAN fleet: September Boeing ER - Manufacturer: The Boeing Company The Boeing 767 is a twin-engine aircraft for long haul flights. It has a twin-aisle wide body. It is the plane that crosses the Atlantic Ocean most often. There are several versions of the 767, the most popular being the ER, with more than 50% of the entire aircraft model. First flown in 1986 and began operations with American Airlines in Date this model joined the LAN fleet: Boeing F

20 - Manufacturer: The Boeing Company. The 767 Freighter is a derivative of the popular ER (extended range). It was released in January 1993, when United Parcel Service (UPS) announced an order for 60 freighters. The first of these aircraft was delivered to UPS in October The 767 freighter is similar in external appearance to the passenger aircraft 767, except for the lack of passenger windows and doors. - Date this model joined the LAN fleet: September 1998 Boeing 777F - Manufacturer: The Boeing Company. The Boeing 777 Freighter aircraft is a twin-engine long-range, high capacity aircraft, which is based on the LR Worldliner. Its entry into service was during the first quarter of The Boeing 777 has a capacity of 104 tons with a range of 9,045 kilometers carrying a full payload. - Date this model joined the LAN fleet: April Boeing: Manufacturer: The Boeing Company. It is one of the most recent versions from this family and it is designed for long-haul routes. The B was released on January 31, The versatility of the aircraft and its efficiency make it a favorite aircraft by airlines that have long-range destinations.

21 II. LAN Maintenance Base Safety of operations is a key objective for LAN Airlines and its affiliates, and a priority commitment to its passengers and cargo customers. The company has a modern maintenance base where their aircraft are regularly subjected to strict programs established by manufacturers and the respective aeronautical authorities. Compliance by LAN to the highest standards of safety, has earned certification, among others, by the Federal Aviation Administration (FAA), along with the directors of aviation in each region: ANAC of Brazil, Peru, Argentina, Ecuador and Mexico. It also has IOSA certification (IATA Operational Safety Audit), which certifies compliance with the highest international standards required in this area, with a quality assurance system in the planning, execution and control of operations. The maintenance base, composed of a select group of 1,600 professionals and technicians, is equipped with cutting-edge facilities and equipment that allows quality, secure and efficient service. As one of the most modern maintenance base in Latin America, it serves the needs of its own fleet and external customers with 24 hour operation, 365 days a year. Among the facilities, there are two large hangars of 5,200 m2 and 4,800 m2 each, where they perform major maintenance work and 13 workshops, housed in an additional area of 5,400 square meters, where support tasks related to avionics, electrical, general mechanics, welding, engines, hydraulics, wheels and brakes, electronics, paint, composite materials, galley, upholstery, and cabin are done. In addition, the Base has a specialized laboratory-ndt-equipped with the latest technology for ultrasonic inspection. This allows for development of programs ranging from repairing structural modifications to the widest range of components.

22 At the base, daily checks on the aircraft are made by the Line Maintenance area, and major inspections, structural repairs and modifications made by Heavy Maintenance. Due to the importance of comfort and excellent service on board, a Cabin Maintenance area, oriented especially inside the aircraft, was created. LAN sends its engines to specialized centers for repairs, such as IAI in Israel, Lufthansa Technik and MTU in Germany and, to the plants of the engine manufacturers, General Electric and Pratt & Whitney, in the United States and other countries. In turn, the Base has onsite representatives of Pratt & Whitney and General Electric as well as Airbus and Boeing, which allows direct and permanent contact with the aircraft and engine manufacturers. The company has contracts with Lufthansa Technik and Air France Industries, for maintenance of aircraft components that make up the LAN fleet; these companies are world leaders in repair of aircraft equipment. For units not covered under the contract, component workshops, certified by FAA and DGAC, are used. At the Base is also the Maintenance Control Center that constantly monitors the technical aspects of the fleet, at all points of the network operated by the company, to maintain constant communication with the pilots during flight. Safety being the cornerstone in the task of aircraft maintenance, LAN has an active training program for all professionals and technicians through Lufthansa LAN Technical Training (LLTT) and constantly exchanges information with the manufacturers of the fleet (Airbus and Boeing) and the most important airlines in the world, including members of the oneworld alliance. The LAN Maintenance Base delivers technical, human and infrastructure resources that allow maintenance work first-rate development, which has been reflected in the quality of service and safety that it gives users.

23 III. Crew Training Center At the Crew Training Center for on board service is the Cabin Emergency & Evacuation Trainer (CEET), where cockpit and cabin crews exercise safety procedures and emergency practices. The CEET is an aircraft, the only one in Chile, specially fitted for LAN for staff training. Here, some of the tests required for renewal of licenses to fly are also performed. The CEET, which began operations in November 2004, is equipped with the latest technology and has the latest equipment to simulate situations as they occur in reality. As part of their ongoing training, at this facility crews have evacuation practice for all types of aircraft that make up the fleet of LAN Airlines and affiliates. Among the advantages, it features a video system that lets you record and review exercises to evaluate the instruction process. This training center is certified by the respective aeronautical authorities of Chile, Argentina, Peru and Ecuador for the training of crews according to the strict safety standards of the company. The CEET is an initiative that grew out of a collaboration between different areas of the company, including Training, Maintenance and Infrastructure, who, coupled with a team of engineers, especially designed and conditioned the aircraft for pilots and crew of LAN Airlines and its affiliates to undertake their training in a place designed for this purpose. The training center for on-board service also has a Mock-Up Service, where the cabin crew exercise procedures associated with in-flight practices. The Mock-Up is a simulation of an equipped aircraft in a room and is also equipped with a video system that lets you record and review the behaviors and attitudes associated with on-board service.

24 Training Plan Initial training of cabin crew is a process that lasts for 9 weeks. During this period practical and theoretical training is done on issues associated with service and safety. In turn, the crew must perform an annual training required by the Civil Aviation Directorate (DGAC), in order to defend their flying license. This process, called Recurrent, lasts two days and is done in conjunction with the cockpit crew. Its aim is to practice all Safety and Emergency procedures. The crew-training center also plans, on an annual basis, renewals of service in order to strengthen aspects of new procedures, attitudes and behaviors associated with the service delivered in different classes. IV. Flight Simulators The safety of operations is a matter of great importance for LAN Airlines and, specifically, flight simulators are key steps in this process. Within the complexity involving the safety standars of the Company, the training and instruction of the pilots in an airline plays a key part. That's why LAN Airlines selects and hires the best professionals and subjects them to rigorous training that allow them to adequately address any situation that may occur during a flight. Part of that training is conducted in flight simulators that are modern and advanced facilities with modern technology to perfectly recreate the cockpit of an airplane. They are mobile structures, formed by six hydraulic axles that reproduce all the physical movements of an aircraft.

25 In flight simulators, the various conditions that can occur are recreated, such as snowstorms, strong winds, low visibility approaches and contingencies in any system of the plane. They also have a cutting-edge visual system, allowing accurate assessment of any airport currently operating in the world. Once the door of a simulator is closed, nothing differentiates it from a real cockpit. The pilots must face the most extreme situations the instructor poses. Even those of very remote occurrence are programmed, since within LAN s strict security procedures, it is necessary to practice and be prepared. Each aircraft type has its own simulator and this is how LAN Airlines pilots are trained in the different models of Airbus and Boeing, according to their respective training. As a result, every time our passengers board a LAN flight, they can be confident of doing so with a company that gives the highest priority to the safety of its operations and has made it a daily commitment of all those who work in LAN. The alliance between LAN and the Canadian company CAE Inc., world leader in manufacturing simulators, has allowed installation in Chile, supporting the prestige of aviation safety that the country has. Thus was created and developed the modern aeronautical complex where three flight simulators are located: Two Airbus A320 and one Boeing , plus a fixed simulator for Airbus A320 and A340, all designed and equipped with the latest technology. This training and pilot training center is one of a kind in Chile and the second largest in South America. Here, training courses and revalidation of flight licenses are held periodically. This has allowed our country to become a regional benchmark for safety as pilots from Peru, Ecuador, Argentina and other Latin American countries also received their training in this center.

26 This complex is an important contribution to the modernization and prestige of aeronautical safety in LAN and the region. V. Passenger and Family Support Since the year 2000, LAN Airlines has a grouping of Assistance to Passengers and Families (APF), consisting of company personnel who are committed to the job of supporting, assisting and informing all people who have been affected by an air emergency. This group completes a demanding training program, which allows people to control their emotions, show solidarity and respond to complex situations, among other things. The company has over 1,000 volunteers, which are distributed in our various affiliates and North America.