The Chilean Tourism Companies Association (ACHET) accused LAN Airlines of false advertising Thursday and announced that the association is considering a formal request that the National Economic Regulator (FNE) open an antimonopoly investigation into LAN Airlines.
The false advertising charges are based on reviews of promotional ticket prices offered by LAN airlines that ACHET claims are misleading to consumers. According to Lorena Arriagada, secretary general of ACHET, the ticket prices omit a series of costs that can increase the final ticket price by as much as 50 percent.
“The advertised prices are those of the cost of the plane ticket without security fees, the cost of fuel, or taxes,” Arriagada said. “This is where we enter into the issue of false advertising.”
ACHET is also concerned that LAN Airline’s December announcement to decrease independent travel agencies’ commissions by six percent represents unfair market manipulation. The organization has threatened to send the issue to the FNE for consideration. The decision to decrease commissions has the potential to seriously impact small and mid-size travel agencies because many up to 50 percent of their total profits from the commissions.
According to a letter from LAN to ACHET released on Jan. 4 by Abel Bouchon, the president of ACHET, LAN “does not have a definite opinion, much less a concrete plan regarding the decrease…When it is opportune, (LAN) will request a meeting with ACHET to analyze the possible effects of an eventual change with the hope of arriving at a beneficial agreement for (LAN’s) clients, the travel agencies, and LAN.”
ACHET is expected to announce this week whether or not the group will formally seek government intervention in the matter.
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