News Release

Given the current situation in LanPeru, LanChile feels itself obliged to make the following statement:

* We deeply regret the current situation facing LanPeru, which has suspended domestic and international flights. This situation could leave more than 420 people out of work and damage passengers` confidence in LanPeru as an airline of international quality, with high standards of safety and security.

* This situation is entirely the responsibility of Peruval and its partners, Mr. Lorenzo Sousa and Mr. Rafael López Aliaga, who by falsifying evidence, lying, manipulating public opinion and distorting reality have acted against LanPeru, bringing legal suits that have culminated in the closing down of the firm`s operations. Proof of this is the fact that Mr. Sousa`s negligent and disloyal attitude led the courts to remove him from his post as President of LanPeru.

* Similarly, Peruval achieved its goal of distancing LanChile from the administration of LanPeru, excluding from the company those very employees whose experience and knowledge of aviation guaranteed the firm`s seriousness and international prestige. It was the very same Mr. Alberto López, current temporary administrator of LanPeru, who failed to tell the truth when he guaranteed that they had the financial support necessary to carry on the company`s operations, a statement that proved false, given that today LanPeru has been forced to cancel its flights.

* The result of the above is that Lloyds International, an airline insurance company based in London, suspended the policy covering both Boeing 737-200s, and leasing contracts for both aircraft were also cancelled.


* We await with confidence action by the Peruvian courts to turn around this difficult situation and we will exhaust all possible measures in our efforts to demonstrate that we have fulfilled our obligations with LanPeru. LanChile underlines the total transparency of its management of LanPeru and repeats that LanChile has supported this company with resources, hours of labor, effort and investment, during its creation and through its development.