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Complete Case details are given below :
Case Name : Lan Airlines in 2008: Connecting the World to Latin America
Authors : Ramon Casadesus-Masanell, Jorge Tarzijan, Jordan Mitchell
Discipline : Strategy
Case Length : 26 pages
Solution sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
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 percent of Lan's overall revenues (markedly different from many U.S. legacy carriers which derive 3 to 4 percent 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 percent 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.
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