Chile: Its Airline Does Better, Its Economy Needs Time

The Chilean government is trying hard to boost the economy. Thursday, the Chilean Central Bank slashed its benchmark lending rate by 25 basis points to 0.5%. Henceforth, the bank will provide financial institutions with 90- to 180-day loans at the new 0.5% rate.

Chilean Airlines is also gaining some strength. During the week LAN Airlines S.A. (LFL), the main domestic and international passenger and cargo airline in Chile and one of the leading airlines in Latin America, announced a 9.3% increase in passenger traffic for the month of June 2009 due to the increase in capacity by 9.1%. LAN continued its expansion and renewal program by adding to its fleet through the Boeing Co. (BA).