LAN Airliines
NYSE : LFL

July 13, 2005 09:30 ET

JAL and LAN Airlines Tie-up Frequent Flyer Program

TOKYO & SANTIAGO, Chile--(CCNMatthews - Jul 13, 2005) -

Japan Airlines and LAN Airlines (NYSE:LFL) have received the Japanese Government's approval to initiate a reciprocal Frequent Flyer Program agreement beginning July 1, 2005.

The JAL Group and LAN Airlines commence a reciprocal Frequent Flyer Program agreement, offering 17.35 million JAL Mileage Bank (JMB) members and approximately 1.4 million of LAN's LANPASS members the ability to accrue and redeem mileage on each other's networks (note 1).

Japan Airlines, Asia's biggest airline group, serves some 208 airports in 35 countries and territories worldwide. The group network extends over 227 international passenger routes, and provides the largest Japan domestic network covering more than 60 destinations.

Ignacio Cueto, Chief Executive Officer of LAN Airlines' passenger division said: "As we are continuously thinking about expanding the benefits to our LANPASS members, we have signed this agreement with the best and most prestigious Japanese company that will allow the accumulation and redemption throughout the vast network of international destinations operated by Japan Airlines. As a result, Latin America's leading frequent flyer program once again offers more and better benefits to its partners around the world."

LAN Airlines is part of a service alliance consisting of five airlines (note 2) in Latin America. The LAN alliance's vast route network reaches a large number of destinations throughout the world, including the Americas, Europe and the South Pacific. LAN Alliance operates 46 destinations in Latin America and seven destinations in United States, Europe and South Pacific.

JAL's frequent flyer member passengers traveling on international LAN flights (note 3) will be able to accrue JAL Mileage Bank mileage and redeem mileage on LAN flights. Similarly, LANPASS members traveling on international JAPAN AIRLINES flights will be able to accrue LANPASS kilometers and redeem their kilometers on JAL flights.

Please refer to http://www.lan.com for further accrual and redemption conditions.

(note 1) Mileage accrual will be applicable for flights on and after July 1, 2005. Application for LAN award tickets will be accepted from August 1, 2005 for flights on and after August 15, 2005. Application for JAL award tickets will be accepted from July 1, 2005 for flights on and after July 15, 2005.

(note 2) LAN Airlines, LAN Express, LAN Peru, LAN Ecuador and LAN Argentina.

(note 3) Domestic Flights of LAN Peru, LAN Express, LAN Airlines and LAN Argentina do not accrue miles on the first stage. LAN Argentina's international flights identified with "4M" code do not accrue miles during the first stage.

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