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  • August 2008 (Revised August 2009)
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Lan Airlines in 2008: Connecting the World to Latin America

By: Ramon Casadesus-Masanell, Jorge Tarzijan and Mitchel Jordan
  • Format:Print
  • | Pages:26
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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.)
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About The Author

Ramon Casadesus-Masanell

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