The Chilean company JetSmart Airlines has announced its interest in the market for low-cost flights in the country. The firm already has the approval of Aerocivil to operate with 27 routes, which will allow it to reach Colombia with its model. as it has already done in Chile. Added to this is the interest he has had in the Viva operation and now also in the Ultra Air airline.
(Also read: JetSmart signs a letter of understanding for the purchase of Ultra Air).
The company, which at the beginning of February of this year will be able to acquire one hundred percent of Viva Airlines, has indicated that it has formed a letter of understanding to evaluate the opportunity to acquire 100 percent of the shares of the airline from low cost Ultra Air.
JetSmart, then, will know the technical and financial information that this type of negotiation requires. and it is expected that this process can be completed in the following 30 days.
(Of interest: JetSmart also offers cargo and mail transportation in Colombia).
As stipulated by the parties in the letter of understanding, after due diligence and in case of confirming a final agreement, JetSmat Airlines and Ultra Air will proceed with the submission of said purchase agreement to the review and approval of the authorities, as established by the rules for this type of transaction.
«We believe in the potential of the Colombian market and we are determined to contribute and add to the development of tourism and employment in the country. We have seen the operational and commercial qualities of Ultra Air and we have reached an agreement on the terms of the purchase of the airline”, said the president and CEO of JetSmart, Estuardo Ortiz.
(You can read: ‘Avianca is not hiring the employees that Viva had’: Mintransporte).
What about Ultra?
The Minister of Transportation, Guillermo Reyes, has indicated that the president of the airline, William Shaw, has been in constant conversation with him and in the Aeronautics, since they intend to continue operating and They have said that they are in a capitalization process.
«What I have insisted on is that in my conversations with him he has told me about the difficulties that the company has, the needs that the company has whether or not to capitalize or sell. And what I have asked for is the figures. How Minister, as the head of the sector, I want to know the reality, not that of a press release, not that of a possession in a media outlet, but the financial statements to date. get out,» Reyes said.
(Also: «Viva is not going to operate again, she no longer has a way to do it»: Mintransporte).
During the due diligence process with JetSmart, Ultra Air will continue to operate under the administrative, operational and financial parameters of the current administrationwithout the Chilean firm having any responsibility or interference in the management, operation, services and finances.
It is important to highlight that, if the purchase is completed, this operation will have a positive impact in terms of consolidating free competition in the air market, given that these airlines do not have matching routes. While Ultra Air is focused on routes within the country, at the moment JetSmart only operates to capital cities of the country from international destinations.
«The possible purchase of Ultra Air will empower it to offer more routes, affordable prices and more options to all passengers,» added Estuardo Ortiz.
(We suggest: ‘Avianca is not hiring the employees that Viva had’: Mintransporte).
The interest in Viva
The dilemma faced by Viva Air workers
The JetSmart directives indicated that they remain firm in that purpose of contributing to the salvation of the Viva company, through the acquisition of the company.
«We believe that a transaction between JetSmart and Viva Air will allow the ultra-low cost model to be maintained in Colombia and that will allow us to continue offering more routes at lower prices,» said Estuardo Ortíz, president of JetSmart, about the proposal to buy Viva a few weeks ago.
Ortíz said that after lack of responses from Viva, they decide to go for Ultra and wait for the approval of the operation.
The Chilean company is part of the airline portfolio of Indigo Partners, an investment fund that controls five other airlines and is recognized for its leadership in this segment of the global airline industry.
Its landing in Colombia includes the operation of 27 routes between the airports of Bogotá, Medellín, Cartagena, Cali, Barranquilla, Santa Marta, Bucaramanga, San Andrés, Pereira, Montería, Cúcuta, Pasto and Pereira.
(Keep reading: Hydrocarbons Agency will take on issues of wind energy, hydrogen and geothermal).
After receiving the endorsement from the Civil Aeronautics, JetSmart must start the process that allows it to obtain the operating permit to provide its services in the country. It would have its main base in the city of Bogotá, and would use Airbus A320-271 Neo type aircraft.
The company will ensure that its entry into Colombia will allow it to take advantage of the slots (airtime slots provided to carry out its activities) at the Bogotá airport and other terminals, maintaining connectivity throughout the country and access to air transport to low prices.
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