Lan Chile believes exports from Colombia will grow

Lan Rises After Announcing Colombian Cargo Plans (Update2)

By James Attwood

May 12 (Bloomberg) -- Lan Airlines SA, Chile's biggest air carrier, rose for the first time in six days in Santiago trading after saying it requested approval to create a cargo airline in Colombia.

Lan recovered 34.3 pesos, or 0.6 percent, to 5,490 pesos after dropping 11 percent last week.

The Colombian unit will add to Lan's cargo operations in Brazil and Mexico, connecting with routes to the U.S. and Europe, Santiago-based Lan said in an e-mailed statement today. Colombia is the region's biggest air cargo market for exports to the U.S., transporting an estimated 200,000 tons a year, it wrote.

``Clearly the advantage of this is the connectivity that Colombia has with the U.S. for example,'' Emilio Andrade, an analyst at Santiago-based brokerage IM Trust, said by phone.

Lan Cargo SA will have 12 months to set up the new airline once it obtains regulatory approval.

By BillBigD on May 12, 2008, 21:03 in Friendly Talkzone.

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