Bid for Chilean airline

Press, 22 June 1989, Page 7

Bid for Chilean airline

By

LES BLOXHAM,

travel editor

Air New Zealand is making a joint bid with a Chilean company for a 25 per cent share of LAN-Chile, Chile’s international and domestic airline.

The Pinochet Government is seeking buyers for 51 per cent of LAN-Chile under a tender process. Air New Zealand said yesterday it had registered its interest in conjunction with the Chilean-owned Luksic Group, a company with subsidiaries in tourism, transport, telecommunications, banking, brewing, and soft-drinks industries.

Final bids will close on July 28 and the Chilean Government says it will announce within 30 days if there is a successful bidder.

“Strategically this involvement could be the key to exciting growth for Air New Zealand and LAN-Chile,” said Air New Zealand’s chief executive, Mr Jim Scott, yesterday.

“We can do a lot of good for each other,” he said. The venture could fill an important gap in the South Pacific rim.

“For some time we have been investing in potential growth in that part of the world.”

Air New Zealand has sales representation in six countries on the South American continent. "An association with LAN-Chile could underpin the Air New Zealand investment in these emerging markets and bring valuable synergies,” said Mr Scott.

Air New Zealand has been LANChile’s general sales agent in New Zealand for 16 years. In 1982 it leased two DClOs to the Chilean airline, after switching to Boeing 7475. Now LAN-Chile, which began as an air-mail service with Gypsy Moths in 1929, has an all-Boeing fleet with frequent services to Central and North America and Europe.