Low cost airline based in Chile, JetSMART Airlines announced on Friday its interest in acquiring 100% of the shares of the Colombian carrier Ultra Air.
Exectuvies of the two companies signed a letter of understanding the day before to initiate the Due Diligence procedure, which will allow the Chilean company to obtain the technical and financial information required for negotiations of this type. The process is expected to be completed within 30 days.
In case of confirmation for a final agreement, JetSMART and Ultra Air will send the purchase contract for analysis and approval by the authorities of Chile and Colombia.
JetSMART President and CEO, Estuardo Ortiz said that he believes “in the potential of the Colombian market and we are determined to contribute to the development of tourism and employment in the country. We saw Ultra Air’s commercial and operational qualities and reached an agreement on the terms of the airline’s purchase.”
Ultra Air is an airline that is still new to the market. The company, which also operates in the low-cost flight market, started operations in Colombia just over a year ago, in February 2022. According to data compiled by Airfleets, the carrier currently has a fleet of six Airbus A320 jets.
The move towards Ultra Air comes at a time when JetSMART obtains authorization to carry out domestic flights in Colombia.
Part of the Indigo Partners group, JetSMART was one of the companies that asked Aerocivil, the Colombian civil aviation authority, to participate in the sale of Viva Air, a low-cost airline that suspended flights days ago after the merger with Avianca was not approved in time.
JetSMART is also one of the companies in the Latin market with the highest growth expectations in the coming years. The company has a firm order for 106 aircraft with Airbus, which will be phased in until 2030.