As the first step towards a working association, CEOs of both airlines signed a Memorandum of Understanding (MOU) in Santiago, Chile, during the 2004 APEC meeting.

The MOU outlines increased cooperation between the two airlines including code sharing and frequent flyer tie-ins. Code sharing and frequent flyer programs should begin in March 2005. Korean Air passengers are expected to take advantage of the new codeshare flight on the Seoul (Incheon)-LAX~Lima-Santiago route.

Korean Air's new Manager of Passenger Sales & Marketing for Latin America, Olaf Kaehlert, said that as of September 2004, the number of travelers from Chile to Korea increased by a staggering 58%, revealing a significant jump in the volume of trade between the two countries. "This traffic should increase as a result of the free trade agreement signed this spring between Korea and Chile. We'll be in a better position to handle this opportunity than any other Asian airline", Kaehlert said.

Codeshare flights will benefit Korean Air passengers by providing easier access to Lima and Santiago, capitals of Peru and Chile respectively.

Korean Air Cargo also is in talks with LAN Cargo about possible codesharing and joint marketing agreements as cargo demand is expected to increase.

In the future, Korean Air plans to cooperate with other major airlines in Central and South America so that passengers will have a seamless and convenient travel experience when flying to those regions.

Korean Air, with a fleet of 119 aircraft, is one of the world's top 20 airlines, and operates almost 400 flights everyday to 90 cities in 33 countries. The airline has about 50 flights per week between the US and Asia from nine US gateways: New York, Los Angeles, Washington, Chicago, Dallas, San Francisco, Atlanta, Anchorage and Honolulu. The carrier is a founding member of SkyTeam, the global airline alliance partnering AeroMexico, Air France, Alitalia, CSA Czech Airlines, Continental Airlines, Delta Air Lines, KLM and Northwest Airlines to provide customers with extensive worldwide destinations, flights and services.