In 1948, the Chilean commercial aviation sector was reformed. The Civil Aeronautics Board (JAC) was created, and the Linea Aerea Nacional (LAN), which held a monopoly on cabotage rights, permitted the entry of several private carriers into the industry. In 1953 LAN's monopoly was eliminated opening a competition among airlines. Based on archival research at the JAC, the Ministry of Foreign Affairs, and using congressional and press records, this article analyzes the emergence of private airlines and evaluates how the end of the cabotage monopoly impacted the internal aviation market and modified both LAN and private carriers' strategies.