Publications
Publications
- August 2008 (Revised August 2009)
- HBS Case Collection
Lan Airlines in 2008: Connecting the World to Latin America
By: Ramon Casadesus-Masanell, Jorge Tarzijan and Mitchel Jordan
Abstract
Lan Airlines operates three distinct models: low-cost for domestic short-haul flights, full-service for international routes; and an international cargo business, the latter of which makes up 33% of Lan's overall revenues (markedly different from many U.S. legacy carriers that derive 3% to 4% of revenues from cargo). Since a change of ownership in 1994, Lan has grown steadily and quickly at a compound annual growth rate (CAGR) of 19% from $318 million in revenues to $3.5 billion at the end of 2007. Lan is at an interesting point in history as the low-cost model was recently implemented. While early results have been strong, observers wonder if the airline can successfully manage three disparate business models.
Keywords
Business Model; Growth and Development Strategy; Competitive Advantage; Air Transportation Industry; Latin America
Citation
Casadesus-Masanell, Ramon, Jorge Tarzijan, and Mitchel Jordan. "Lan Airlines in 2008: Connecting the World to Latin America." Harvard Business School Case 709-410, August 2008. (Revised August 2009.)