A letter of intent has been signed by American Airlines and JetSmart to launch a joint offering in the Americas.
The proposed agreement would link American Airlines’ full-service global presence with the ultra-low-cost carrier’s complementary network in South America.
Flyers across North and South America will benefit from lower airfares and more travel options thanks to the partnership.
Vasu Raja, American chief revenue officer, said: “This proposed investment in JetSmart would give customers access to the largest network, lowest fares and best travel loyalty program in the Americas.”
“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.”
JetSmart is a portfolio airline of Indigo Partners, a low-cost airline provider. It operates out of Chile and Argentina.
JetSmart has a modern fleet of Airbus A320 aircraft that fly to 33 destinations in South America on short-haul domestic and international routes.
Since 1942, American has served Latin America, flying to 17 destinations throughout South America from its hubs in Dallas-Fort Worth, Miami, and New York.
Bill Franke, the founder and managing partner of Indigo Partners, said, “We look forward to working with American to continue delivering low fares and customer choice throughout South America.”
The proposed deal would see American invest in JetSmart to help the short-haul South American carrier grow, as well as offer American a minority ownership share in the company.
Additionally, American and Indigo Partners would commit to pooling their resources to fund future possibilities in the region.
“By connecting and growing our respective networks, and maintaining our distinct business models, we see a compelling value proposition,” said Estuardo Ortiz, JetSmart’s CEO.
When completed, he continued, the proposed collaboration will help JetSmart become the dominant South American low-cost carrier while also extending service for American’s consumers.
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