The low-cost airline from Santiago, Chile, JetSMART, has canceled its Memorandum of Understanding (MOU) that would have led to the purchase of Ultra Air. Ultra Air is a separate low-cost airline that is headquartered in Antioquia, Colombia. Instead of purchasing Ultra Air, JetSMART will instead be looking to certify as an aircraft operator in Colombia.

The initial intent

JetSMART initially planned to purchase Ultra Air, which has been struggling financially recently, in order to establish routes in Colombia and utilize Ultra Air's infrastructure. JetSMART President and Chief Executive Officer, Estuardo Ortiz, spoke about the potential sale earlier this month, saying,

"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. The possible purchase of Ultra Air will empower it to offer more routes, affordable prices, and more options to all passengers."

However, with the cancelation of the MOU, JetSMART will now be terminating the process and the airline no longer intends to purchase Ultra Air. Today, Ortiz spoke about the MOU cancelation, saying,

"We have advanced in the process and consider that, due to various factors, it is not possible to continue with the intention to purchase Ultra Air, and we have canceled the letter of understanding and terminated the process. Our commitment and confidence in the Colombian market remain firm.

"As we have stated throughout this time, at JetSMART we will continue to focus on meeting the requirements of our certification process by working closely with Civil Aeronautics, who have performed with the highest level of professionalism. In this way, we hope to obtain our Air Operator permit in Colombia, with a view to starting operation as soon as possible and thus be able to participate in the process of reassignment of slots at El Dorado airport."

With the cancelation of the airline's MOU, JetSMART will look to expand its presence in Colombia elsewhere.

JetSMART will continue working towards its expansion to Colombia

The Chilean airline already has three operating certificates in South America. JetSMART currently owns operating certificates in Chile, Argentina, and Peru. In Colombia, JetSMART began operation in 2019. The airline currently connects Bogotá, Medellín, and Cali with Santiago de Chile and Cali with Antofagasta.

Recently, the Colombian aviation regulator, Aerocivil, approved JetSMART to operate an additional 27 domestic routes in Colombia. Shortly after, JetSMART announced it would be canceling its MOU and therefore stopping the purchase of the Colombian-based airline Ultra Air. This will allow JetSMART to become a domestic carrier in Colombia.

JetSMART plans to use Bogotá as its main hub in the country. It will look to utilize the Airbus A320 family to cover the 27 approved routes across the country. Some of the cities the airline will look to create a route to include Medellín, Cali, Barranquilla, and San Andrés.

JetSMART has been flying in South America since its founding in 2017. Since then, the airline has utilized various planes from the Airbus family. The airline currently flies 11 Airbus A320-200s, six Airbus A320neos, and two Airbus A321neos. However, JetSMART has nearly 100 more Airbus aircraft on order, showing the airline's urge to continue to expand its South American operations.