LAN ECUADOR ANNOUNCES APPROVAL FOR DOMESTIC OPERATIONS

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Guayaquil/Quito, December 23, 2008.

LAN Ecuador, a subsidiary of LAN Airlines (NYSE: LFL / IPSA: LAN), announced that on December 22, 2008 the Civil Aviation Authority of Ecuador officially notified the Company of its decision to authorize operations in the domestic passenger market. LAN Ecuador received authorization to operate the following routes: Guayaquil-Quito-Guayaquil; Guayaquil-Cuenca-Guayaquil; Quito–Cuenca-Quito and Quito/Guayaquil-Galapagos-Guayaquil/Quito.

"This decision represents an important recognition by aviation authorities of the work we have accomplished over our five years of operation in Ecuador, contributing to tourism, connectivity and the economic and social development. LAN Ecuador’s firm commitment is to offer a new and efficient air transport alternative to passengers and cargo clients on domestic routes in Ecuador," stated Mr. Max Naranjo, General Manager of LAN Ecuador.

LAN Ecuador, an affiliate member of the oneworld alliance, expects to initiate flights in the domestic market at the end of March 2009, operating modern A320 family aircraft, which include the most advanced technology in the industry to provide the best travel experience to domestic customers. "We hope to provide an excellent service with the highest safety standards and a commitment to the preservation of the environment," added Mr. Naranjo.

In this way, the Company reaffirms its commitment with Ecuador, the development of air transport and tourism, generating employment and investment for the economic and social development of the country.

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