LAN Airlines S.A. and its related companies, ("LAN" or "the
Company") (NYSE:LFL / IPSA:LAN), one of the leading airline groups in
Latin America, announced that its Board of Directors approved a
proposed capital increase of 22,090,910 ordinary shares at an
Extraordinary Session held today. This amount will replace the capital
increase of 7,500,000 shares approved at the Extraordinary
Shareholders Meeting held on January 26, 2007.
The proceeds of this increase will be used to finance LAN's fleet
expansion program, resulting from the strong traffic growth in the
markets where the Company operates. The new fleet expansion program
includes the arrival of 5 long-haul passenger aircraft, 4 dedicated
freighters and 15 Airbus A320 family aircraft. These aircraft will be
delivered between 2008 and 2011, with list prices that total
approximately US$1.8 billion. In addition, a portion of this capital
increase will be allocated towards a stock option plan for Company
employees.
This capital increase will be presented for approval at an
Extraordinary Shareholders Meeting to be held April 5, 2007, in
conjunction with LAN's Annual General Shareholders Meeting.
About LAN
LAN Airlines is one of the leading airlines in Latin America.
"LAN" makes reference to the consolidated entity that includes LAN
Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as
well as LAN Cargo and its affiliates. Through its own operations and
code-share arrangements, the LAN Alliance serves 15 destinations in
Chile, twelve destinations in Peru, nine destinations in Argentina,
two in Ecuador, 30 destinations in other Latin American countries, 25
in North America, 13 destinations in Europe, four in the South Pacific
and one in Asia. Currently, the LAN Alliance operates 70 passenger
aircraft and 10 dedicated freighters.
LAN Airlines is a member of oneworld (TM), the world's leading
global airline alliance. It has bilateral commercial agreements with
oneworld partners American Airlines, British Airways, Iberia and
Qantas, as well as with Alaska Airlines, AeroMexico, Mexicana, and
TAM. For more information visit www.lan.com or
www.oneworldalliance.com.
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