The ultra-low-cost carrier JetSMART met yesterday with Colombian authorities in a public hearing, taking the first step in the certification process to establish a new airline in the country. If approved, it would be JetSMART’s fourth domestic operation; it already has passenger flights in Chile, Argentina, and Peru.
Is there a new airline on the horizon?
JetSMART is looking to expand its operations throughout South America. Yesterday, the airline met with the Colombian authorities to begin the certification process to establish an airline in this country.
During the meeting, JetSMART requested to operate routes between 22 airports in Colombia. Overall, the airline is looking to serve 111 routes –some domestic and some international– and most of them do not go through Bogota’s El Dorado International Airport (BOG), which would boost point-to-point connectivity and serve to decentralize the country’s civil aviation industry. Estuardo Ortiz, JetSMART’s CEO, said,
“This is an important step in JetSMART’s growth plan in South America. We see great opportunities in the Colombian market, which we have served since 2019 with international routes from Chile. Colombia has shown a rapid recovery in traffic compared to pre-pandemic levels and sustained dynamism for many years.”
An Airbus fleet for Colombia
JetSMART currently has a fleet of modest size, with nine aircraft in Chile, eight in Argentina, and three in Peru. Nonetheless, the low-cost carrier has one of the largest unfilled orders for narrowbody jets in Latin America. Airbus still has to deliver 104 additional aircraft to JetSMART, including 42 A320neos, 48 A321neos, and 14 A321XLRs.
JetSMART indicated that it would employ the Airbus A320neo and A321neo for its operations in Colombia. Earlier this month, a JetSMART filing showed that the airline is looking to have a fleet of up to 12 narrowbody planes in Colombia, which would be delivered in the next three years.
Does Colombia need a new airline?
Colombia has one of the most competitive aviation industries in the Americas. Unlike other countries, which have two or three airlines, Colombia has seven main carriers currently serving domestic passenger flights. These are Avianca, LATAM, Viva, SATENA (Government-owned), easyFly, Wingo, and Ultra Air.
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The market is extremely well diversified, with Bogota still the main hub in the country. Nonetheless, other airports –notably Medellín International– have been gaining traction in the last few years.
Colombia is an important market for low-cost carriers, with Viva, Wingo, and Ultra Air operating under that business model. A fourth low-cost carrier could lead to a fare war. The country’s aviation market is already in a consolidation process with the Avianca-Viva ongoing merger. If JetSMART were to enter Colombia, it may lead to more consolidation or put pressure on smaller carriers such as Ultra Air and easyFly. It would be interesting to see how an American Airlines-backed airline (JetSMART) could impact the market.
Estuardo Ortiz has already shown some concern about the current state of Colombia’s civil aviation market. He said,
“JetSMART is and will always be in favor of free competition and the reduction of taxes and boarding fees, which translate into benefits for users. However, we are concerned about the saturation of slots at El Dorado airport, and it is important to free up space in order to offer more flights, more options, and better prices to Colombians.”
Do you think JetSMART should enter the Colombian market? Let us know in the comments below.