Aviation History
Chilean commercial aviation began in 1929 with the founding of Línea Aérea Nacional (LAN) as a state-run airmail and passenger service linking Santiago to the country's long, geographically isolated coastline. LAN was privatized in the late 1980s and early 1990s, eventually coming under the control of the Cueto family's investment group, and grew into one of Latin America's leading carriers. In 2012 LAN merged with Brazil's TAM Airlines to form LATAM Airlines Group, now the largest airline group in Latin America. Chile's domestic market later saw strong low-cost competition emerge, notably from Sky Airline and JetSmart, driving a sharp rise in air travel affordability. Santiago's Arturo Merino Benítez International Airport serves as the country's main hub, and Chile remains a significant base for LATAM's operations alongside a competitive domestic LCC segment.
LAN was created as a state military-run airline, opening Chile's first scheduled route between Santiago and Arica.
LAN expanded from airmail into regular domestic passenger service along Chile's elongated north-south geography.
LAN Chile started operating international routes beyond South America, including early transpacific and long-haul services in subsequent decades.
The Chilean government privatized LAN Chile, eventually placing control with the Cueto family-led investor group.
LAN rebranded and expanded affiliate operations across Peru, Ecuador, Argentina, and Colombia, building a multinational South American network.
LAN Airlines merged with Brazil's TAM Airlines to form LATAM Airlines Group, the largest airline holding company in Latin America.
JetSmart began operations in Chile, intensifying low-cost competition alongside incumbent Sky Airline.
The COVID-19 pandemic's collapse in air travel demand led LATAM Airlines Group to file for U.S. Chapter 11 bankruptcy protection, emerging restructured in 2022.
LATAM Airlines Chile (formerly LAN Chile) · Sky Airline · JetSmart
Compiled from general public/encyclopedic aviation history sources; LATAM's post-bankruptcy financial structure and Chile's LCC market shares change frequently and should be verified for current figures.