LAN Airlines Introduces New Premium Business Class

With the launching of the new premium business on long-haulflights between North and South America, LAN Airlines will offer alevel of service offered by few airlines in the world. The new conceptis based on what long-haul business passengers value most on long-haulflights: the ability to rest.

Over the next two years, all Boeing 767-300 aircraft in the fleetwill incorporate the new premium business seats, featuring a full-flat180-degree recline, which is only available from five companies in theworld, offering greater comfort for sleeping in a completely full-flathorizontal position. Down comforters and soft pillows will create atrue bed experience, and dividing panels between seats will offermaximum privacy during the flight.

In addition, the distance between seats will be increased to 74inches, a considerable 32 percent increase in space for passengerscompared to LAN Airlines' current business class and a significantincrease to that offered by other airlines in the world, providingmaximum comfort for resting. The new service, specially designed toincrease the rest time available on overnight flights, offers peaceand tranquility in the cabin.

This initiative represents an investment in service of more thanUS$100 million.

"At a time when the airline industry is facing difficult times asa result of the high price of fuel, LAN continues to believe in thefuture and reaffirms its commitment to the service and excellence thatthe company offers its clients worldwide," says Ignacio Cueto, ChiefExecutive Officer of LAN Airlines' passenger division. "This new LANproject revolutionizes the concept of air travel and allows us tooffer a product that only a select group of airlines in the worldoffer their passengers."

The inflight entertainment will also reach a superior level withlarger 15.4-inch individual video monitors that offer betterresolution and an updated audio-visual content with an audio and videoon demand system that allows passengers to choose from eight films and20 short programs with the ability to fast-forward, rewind or pauseselected films.

In addition, there will be 14 interactive video games and a truemusical library with 100 CDs to choose from and enjoy with qualitydigital sound from the latest generation in advanced noise-cancelingheadsets that notably reduce the external noises of the cabin,producing a pleasant sensation of privacy.

The aircraft interior will also be modified, offering a largerspace and improved lighting. Other elements of the new service,including such items as dishes, glasses and serving trays amongothers, have been redesigned with the new modern and elegant styleconsistent with the new premium business service.

This transformation of the Boeing 767-300 fleet also includesimprovements in economy class with the objective of making a morepleasant travel experience. It includes larger individual videomonitors with enhanced resolution in each seatback in which passengerswill be able to directly choose from various audio and video on demandprogramming options using an easy touch screen menu.

In addition, the economy class improvements include increasedspace for personal carry-on items at each seat, as well as new dishes,carpeting and other items such as pillows and blankets. "We want totake care of our passengers with a smile and attentiveness in a warmand comfortable atmosphere, always with the same level of excellencethat distinguishes us," adds Ignacio Cueto.

Cabin Specifications

I. New Premium Business

Seats:

-- Sleeper seat with 180-degree full-flat recline

-- Distance between seats increased to 74 inches

-- Dividing panels between seats for maximum privacy

-- Four pre-programmed seating positions

-- Arm rests that lower when changing seat position to horizontal bed, giving a five-inch greater width

-- Down comforters and soft pillows

-- New spaces for personal carry-on items

Entertainment:

-- Larger individual video monitors - 15.4 inches - with high resolution, offering audio and video on demand

-- Updated content with eight movies, 20 short programs, 14 video games and 100 music CDs

-- Noise canceling headsets that reduce the external noises of the cabin, producing a pleasant private experience.

-- Retractable remote control

Service:

-- Sequence of service redesigned especially to provide maximum hours of sleep on overnight flights: silence and tranquility in the cabin

-- Glass wear: new wine glasses to enjoy the best wines of the region

-- New champagne glasses

-- Dishes: a new classic-style design with contemporary influences

-- New fabrics inspired by natural lines that are simple and elegant

II. Innovations in Economy Class

Entertainment:

-- Individual video monitors in each seatback featuring a larger size of 8.9 inches and optimal resolution with touch-screen programming providing an easy and comfortable way to select options, offering audio and video on demand

-- A retractable remote control for operating the audio and video system

-- Updated entertainment content, including a selection of eight movies, 20 short programs, 14 video games and 100 music CDs

Seats:

-- Increased recline and cushion that slides forward one inch for greater comfort

-- Increased space for carry-on items, as well as cup holders

-- Adjustable headrests offering greater comfort

-- New fabrics, carpeting and redesigned pillows and blankets

The LAN service alliance participating airlines, LAN Airlines(NYSE:LFL), LAN Peru, LAN Argentina and LAN Ecuador, offer a unitedspirit of reliability and charm that provides passengers the highestlevel of service and safety with the complete travel experiencethroughout the skies of the Americas.

The LAN service alliance's vast route network reaches a largenumber of destinations throughout the world, including the Americas,Europe, Asia and the South Pacific. The alliance offers non-stop anddirect flights from North America to Argentina, Chile, Colombia,Dominican Republic, Ecuador, Peru and Venezuela with service from 29North American cities, including daily flights from its Miami, NewYork and Los Angeles gateways. Passengers traveling with any of theLAN service alliance participating airlines may accumulate frequentflier kilometers/miles in LANPASS or American Airlines' AAdvantage.Additionally, passengers traveling with LAN Airlines or LAN Peru mayalso accumulate frequent flier miles in any of the oneworld(TM) memberfrequent flier programs.

For additional information, contact LAN toll-free at 866-I-FLY-LAN(866-435-9526). Visit LAN's website at http://www.lan.com.

MEDIA NOTE: A complete selection of high-resolution photos of LANAirlines' new premium business service seats are available uponrequest by contacting Misty Pinson/MSP Communications at 954-341-2535or mspcomm@bellsouth.net.