American Airlines to take stake in JetSmart

American Airlines and JetSmart have signed a letter of intent to create a joint providing within the Americas.

The proposed partnership would tie collectively the full-service, world presence of American with the complementary community of the ultra-low-cost provider in South America.

The pair hope to supply aggressive fares and expanded journey choices for flyers all through North and South America.

“This proposed investment in JetSmart would give customers access to the largest network, lowest fares and best travel loyalty program in the Americas,” stated Vasu Raja, American chief income officer.

“This would enable JetSmart and American to grow aggressively and profitably across Latin America as demand recovers, while preserving the best aspects of each carrier’s business model.”

Operating from Chile and Argentina, JetSmart is a portfolio airline of Indigo Partners, a developer of low-cost airways.

JetSmart operates a contemporary fleet of Airbus A320 plane and gives short-haul home and worldwide service to 33 locations all through South America.

American has served Latin America since 1942 and gives service to 17 locations in South America from its hubs in Dallas-Fort Worth, Miami and New York.

“We look forward to working with American to continue delivering low fares and customer choice throughout South America,” stated Bill Franke, founder and managing associate of Indigo Partners.

Under the proposed transaction, American would put money into JetSmart to facilitate this progress and provides American a minority possession stake within the short-haul South American provider.

Additionally, American and Indigo Partners would collectively commit to supply further capital to fund potential future alternatives within the area.

Estuardo Ortiz, chief government of JetSmart, added: “By connecting and rising our respective networks, and sustaining our distinct enterprise fashions, we see a compelling worth proposition.

“When completed, this proposed partnership would accelerate our path to becoming the leading South American low-cost carrier while expanding service for American’s customers.”

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