American Airlines Group The company agreed to buy a stake in Jetsmart Airlines SpA, an unlisted low-cost airline, with Headquarter in ChileThe US has hinted that it may open the door to additional deals with other low-cost carriers operated by Indigo Partners LLC.
American Airlines will pay an undisclosed amount for a minority share JetSmart, one of several airlines owned by Bill Franke’s Indigo, has yet to be located, the two companies said Thursday.
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The terms of the LOI are being worked on for a final agreement, which is also subject to finalization and receipt of governmental and regulatory approvals.
“We believe this is a model, if done well, that could extend to the entire continent and to other parts of the world,” he said. Faso Raja, America’s chief revenue officer, on a call with reporters, did not directly mention IndiGo’s other airlines.
“But we have to walk before we run and make sure we meet clients here and now. We are very excited about what could go further.”
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In accordance with the pending agreement, American and Indigo Partners They jointly agreed to contribute additional funds for undisclosed “potential future opportunities in the region.” Indigo owns a majority stake in Frontier Group Holdings Inc. , the parent company of Frontier Airlines; Hungarian Wizz Air Holdings Plc and Mexican Volaris.
Frank is the Managing Partner of Indigo and President of Frontier. The codeshare or marketing alliance will connect US Airways’ extensive, long-range network from the US to South America with JetSmart’s low-cost, short-haul routes to 33 destinations, mostly in the western half of the continent, that will allow passengers to travel seamlessly across the continent.
for this part, Stewart OrtizBy growing its line networks and connectivity, and maintaining its business model, “We see a strong value proposition for our future growth,” JetSmart CEO added.
Operating from Chile and Argentina, JetSmart is an airline in the Indigo Partners portfolio, one of the world’s leading developers of the next generation of ultra-low-cost airlines. JetSmart operates a fleet of Airbus A320 aircraft and provides short-term national and international services to 33 destinations across South America.
For its part, American Airlines has flown to Latin America since 1942, providing services to 17 destinations in South America Its US centers are in Dallas, Fort Worth, Miami and New York. Through the code shared by the two companies, customers can travel without problems throughout the American continent.
In other words, completion of this proposed alliance will accelerate JetSmart’s path to becoming the leading ultra-low-cost airline in South America, while at the same time expanding service to American Airlines customers, also giving US customers access to lower fares and travel options on a network twice the size of other alliances.
the Customers will be able to accumulate and use miles In the US loyalty program AAdvantage on JetSmart flights. American also has a partnership and codeshare agreement with the Brazilian GOL . Smart Airlines NS.
With information from Bloomberg
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