1st Edition
A History of the Aviation Industry in Latin America Nationalism, Developmentalism and Neoliberalism in Chile
This book analyzes both the Chilean state policies on commercial aviation and the corporate history of the state-owned ailrine Línea Aérea Nacional (LAN) between 1929 and 1989. The book covers a transition from the early adoption of policies that were nationalist, from both the national security and economic standpoints, through the complete deregulation of the skies and the sale of the state airline to foreign capital. Both processes were implemented by army officers (Carlos Ibáñez del Campo and Augusto Pinochet, respectively). It shows that LAN’s corporate development was marked by the construction of a national aviation paradigm that, albeit initially characterized by a clear definition of nationalism with the state as preeminent, was far from static over time. As from 1929, the role of the state airline, as both a transport service provider and an instrument of public policy, was subject to review. This was due in part to Chile’s political dynamics in the twentieth century in terms of matters such as the level of consensus/dissent about the development model and the role of the state, SOEs and the private sector in the economy. It also reflected trends in the commercial airline industry globally, technological advances and, as from the 1970s, pressures to liberalize the sector.
1. Introduction
2. A Turbulent Take-off: The Early Years of Chile’s LAN Airline, 1929-1938
3. The Chilean Industrialization Project and the Consolidation of LAN, 1938-1952
4. The State Airline and the First Liberalization of the Air Transport Market, 1952-1958
5. The Consolidation of LAN in a Changing Political Context, 1958-1970
6. Towards an Airline for the People’s Government? 1970-1973
7. Neoliberalism, Liberalization of the Skies and Privatization, 1973-1989
8. Conclusions
Biography
Diego Barría Traverso is a full professor at the School of Public Administration of the University of Valparaíso, Chile. He holds a PhD (cum laude) in history from Leiden University, Netherlands. His main research areas are the history of public administration, state companies and the intellectual history of public administration.
“Anyone interested in learning about how national and private airlines weather the swirling political, economic, international relations, and business currents should read this study of the emergence and development of the Chilean aviation industry. What started as an enterprise serving budding nationalism, became an instrument in developing the country’s economy, and in the last several decades operated in a Chicago-school inspired neoliberal context. This study is rich in detail and based on extensive research in and use of primary and secondary sources. One lesson learned from this study is that public and private interests are best served when balanced. Too much control by one (state) or the other (market) opens industry and policy up to opportunities for corruption. Barria has embedded the evolution of the Chilean aviation industry nicely in the larger Latin American and global context. Hence, it is of relevance to any territorial state.” Jos C. N. Raadschelders, Professor, John Glenn College of Public Affairs, The Ohio State University
"Diego Barría has produced a fascinating book on the history of the Chilean national airline. He convincingly shows the decisive role played by this public company at the different developmental strategies followed by the Chilean state during the 20th century. A must-read book to understand how Chilean public policies work." Patricio Silva, Professor of Modern Latin American History, Leiden University, The Netherlands
"The knowledge of LAN Chile's history in this book written by D. Barria is an essential contribution for the reader interested in air transport as an instrument of modern national sovereignty and mobility. The work of documentation and archival research provides rigor and solidity to the author's arguments. The history of commercial aviation, especially in Latin America, already has since now a basic book to be read." Javier Vidal, Universidad de Alicante
"This book provides a lucid evaluation of the challenges and opportunities Chilean commercial aviation faced as it built itself in the twentieth century. Diego Barría Traverso's work is notable for its measured explanation of the nationalist and economic impulses that affected airline development and how this influenced in turn practices ranging from fleet selection to air routes served. This book offers a valuable update in a field often left to enthusiasts; in so doing, it contributes to a new wave of investigations into the rich history of Latin American aviation." Guillaume de Syon, Albright College
