LAN Receives Statement of Objections from the European Commission Regarding Air Freight

Business Wire, Dec 28, 2007

SANTIAGO, Chile -- As previously reported, in February 2006 the European Commission, in conjunction with the Department of Justice of the United Status, initiated a global investigation including a large number of international cargo airlines -- among them LAN Cargo S.A., the cargo subsidiary of LAN Airlines S.A. ("LAN" or "the Company") (NYSE: LFL / IPSA: LAN) -- for possible price fixing of cargo fuel surcharges and other fees in the European and United States air cargo markets.

On December 26, 2007, the Directorate-General for Competition of the European Commission has notified LAN Cargo S.A. and LAN of the initiation of proceedings against 25 cargo airlines, among them LAN Cargo S.A., for allegations of anti-competitive behavior in the air freight business.

In the United States, the Department of Justice continues its investigation into this matter.

LAN is currently studying the terms of the notification in order to determine its course of action. The Company will formally respond to the allegations and provide the evidence it deems appropriate. Given the current stage of the proceedings, it is not possible at this stage to anticipate the outcome.

From the outset LAN has instructed its personnel and advisors to provide all necessary collaboration to the respective authorities. The Company has maintained and maintains a policy of strict compliance with existing legislation in the countries in which it operates and condemns any infraction to its rules regarding competition.

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. The LAN Alliance serves 15 destinations in Chile, 12 destinations in Peru, 10 destinations in Argentina, two destinations in Ecuador, 15 destinations in other Latin American countries and the Caribbean, three destinations in the United States, two destinations in Europe and four destinations in the South Pacific, as well as 52 additional international destinations through its various code-share agreements. 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, TAM and Korean Air. For more information visit www.lan.com or www.oneworldalliance.com.