The advance of “low cost” airlines in the region is getting stronger. JetSmart, one of them, has announced that it seeks to expand into the South American market and thus, its intention is to buy 100% of the shares of the Colombian airline Viva Air (Fast Colombia SAS).
JetSmart, with US capital, began operations in the region in 2017 and has experienced meteoric growth. His move to acquire the Colombian airline, in a fragile financial situation, is also a coup Aviancathe other airline of Colombian origin, but now based in England, which in turn negotiates a merger with Viva Air.
Regarding the strategy motivating the airline to undertake the acquisition, Estuardo Ortiz, CEO of JetSmart, commented in a company statement: “We believe that a transaction between JetSMART and Viva Air will enable maintain the ultra low cost model in Colombia and thus continue to offer more routes at lower prices. We have a long-term vision to expand into South America and are able to continue investing in our growth,” he explained.
The manager mentioned the potential of the Colombian market and observed: “Our alternative will benefit users, strengthening free competition in the sector, promoting tourism and connectivity in the country”.
For Jet Smart, The Colombian market is very important, both from a tourist and business and commercial point of viewin addition to having a large exchange of residents, with countries such as Chile, Peru and Argentina, so it is essential to contribute to connectivity between Latin American countries, not just between capitals, the company explained.
JetSmart is a low cost airline with domestic operations in Chile, Argentina and Peru; and 79 routes across South America with services to Brazil, Colombia, Paraguay and Uruguay. It currently has a fleet of 23 aircraft and a firm purchase order for Airbus A320 and A321 aircraft, to exceed 124 aircraft by 2029.
The company was founded in 2016 and is part of the airline portfolio of American fund Indigo Partners, as well as Frontier in the United States, WizzAir in Europe, Volaris in Mexico, Lynx in Canada and Cebu Pacific in Asia.
Indigo Partners is a private equity firm, headquartered in Phoenix, Arizona, United States. Focuses on acquisitions and strategic investments in the aviation and related industries. The company, founded by Bill Frankie, an entrepreneur with extensive experience in various industries.
In Argentina, Jet Smart had a 15% share of the cabotage market in 2022. It was only behind Aerolíneas Argentinas (63%) and flybondi (21%), its other low-cost competitor.
It also achieved a 48 per cent improvement in the number of passengers carried on domestic flights over the past year (the highest number since it operated in the country), from 134,526 to 199,715 tickets sold, according to statistics released by the agency. National Civil Aviation Administration (ANAC). Also, participate in 5% of regional international flights (within South America) which connect with Argentina.
Source: Clarin
