LAN Airlines operates three different models: cheap for domestic short-haul flights, a full range of international destinations, as well as international business goods, the latter of which is 33 percent of all income Lan (markedly different from many modern American airlines that receive 3 to 4 percent of the revenues from freight). Since the change of ownership in 1994, Lang is growing steadily and rapidly on a compound annual growth rate (CAGR) of 19 percent from $ 318 million in revenue to $ 3.5 billion at the end of 2007. Lan is at an interesting point in history as a low-cost model has recently been implemented. Although early results were strong, observers wonder if the airline can successfully manage three different business models.
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by Ramon Casadesus - Masanell, Jorge Tarzijan, Jordan Mitchell Source: Harvard Business School 26 pages. Publication Date: August 21, 2008. Prod. #: 709410-PDF-ENG
