At the 105th session of the Aerocommercial Projects Evaluation Committee (CEPA in Spanish) of the Civil Aeronautics of Colombia (Aerocivil), it was decided to postpone the decision to authorize JetSMART to provide scheduled passenger, cargo and mail flights within Colombia.
The CEPA based its decision on the analysis of the petition and the observations presented by different stakeholders at the public hearing.
Before approving JetSMART’s request, the ultra low-cost carrier must inform CEPA «extensively and sufficiently» about the scope of the incorporation of American Airlines into its capital stock, a process that is advancing in Chile’s competition regulator. In the coming weeks JetSMART will file a document related to the transaction.
On the other hand, they will also have to adjust the route request, since CEPA considers that today JetSMART does not have enough aircraft to serve the 111 proposed routes.
Indigo Partners’ ultra low-cost carrier had proposed to operate 12 Airbus A320neo aircraft based in Colombia, which would be incorporated over a three-year period.
JetSMART declined to comment on the postponement of Aerocivil’s decision.
JetSMART has been operating domestic flights in Chile since 2017, in Argentina since 2019 and in Peru since 2022. By the end of 2022, JetSMART’s South American fleet will consist of eleven Airbus A320ceo, ten A320neo and three A321neo.
In 2023, JetSMART will take delivery of fourteen additional A320neo and A321neo aircraft to be distributed among Argentina, Chile, Colombia and Peru. All of these aircraft are part of an order for more than ninety aircraft signed in 2019 by the airline’s controlling group, Indigo Partners. JetSMART maintains the goal of reaching one hundred aircraft by 2026, including fourteen A321XLRs that will allow it to reach destinations in Mexico, the United States, and the Caribbean from its bases in South America.
JetSMART’s entry into a revolutionized market
The ultra-Low Cost operates three international routes from Chile: Santiago to Bogota and Cali; and Antofagasta-Cali. In addition, JetSMART Peru was authorized to operate to seven Colombian cities from Lima, Arequipa and Cusco.
JetSMART’s request came at a time when the local VIVA is processing Aerocivil’s rejection of its integration with Avianca. The low cost airline has stated on several occasions that it is going through a complicated financial situation because of the increase in fuel prices and inflation, which puts its survival at risk if its agreement with Avianca is not approved.
During 2022, Ultra Air became Colombia’s newest airline. It currently operates six Airbus A320ceo aircraft on fifteen domestic routes and plans to launch its first international routes next year.
