LAN Chile: A Symbol of National Pride

Abstract

LAN Chile serves as a compelling example of an enterprise whose growth and prominence is deeply intertwined with nationalized-turned-privatized Chilean economic policies. Like the vast majority of Chilean firms established in the 1930s, LAN Chile began as a state-owned enterprise (SOE), a project of the military to carry passengers and cargo throughout Chile and neighboring countries. Growing political and economic pressures resulted in state divesture in the carrier and the sale of stocks to foreign and domestic investors. As Chile's economy diversified and modernized, a thriving LAN Chile-once just a regional powerhouse-emerged as a leading global carrier. The economic impact of LAN Chile is indicative of a defining characteristic of modern Chile, the bold effort to modernize, advance and enter the global economy.