Category Archives: JetSmart (Argentina)

American Airlines partners with JetSMART in Argentina and Chile

American Airlines today made this announcement:

  • American proposes acquiring a minority ownership stake in JetSMART allowing the carrier to rapidly grow its low-cost network in South America.
  • Customers would be able to earn and redeem AAdvantage miles on JetSMART flights.
  • Broad connectivity and robust loyalty program would create a compelling customer offering in Latin America.
  • Proposed codeshare agreement between the two airlines would create more options for customers traveling between the United States and South America.

American Airlines and JetSMART have signed a letter of intent to create the broadest network and most rewarding customer offering in the Americas. This proposed partnership would uniquely tie together the full-service, global presence of American with the complementary network of ultra-low-cost carrier JetSMART in South America to offer competitive fares and expanded travel options for flyers throughout North and South America.

Copyright Photo: Eurospot.

Operating from Chile and Argentina, JetSMART is a portfolio airline of Indigo Partners, one of the world’s premier developers of new generation ultra-low-cost airlines. JetSMART operates a modern fleet of Airbus A320 aircraft and offers short-haul domestic and international service to 33 destinations throughout South America. American has served Latin America since 1942 and offers service to 17 destinations in South America from its U.S. hubs in Dallas-Fort Worth, Miami and New York. Through the two airlines’ codeshare, customers would be able to travel seamlessly throughout the Americas.

Under the proposed transaction, American would invest in JetSMART to facilitate this growth and give American a minority ownership stake in the short-haul South American carrier.

Additionally, American and Indigo Partners would jointly commit to provide additional capital to fund potential future opportunities in the region. American can strengthen and grow its South American network through this proposed partnership to attract more travelers in more markets. This proposed partnership, along with others in Latin America, would also give American customers access to more low fares and travel options on a network that is twice as big as other alliances.

The intended investments and codeshare agreements are subject to definitive documentation and any required governmental and regulatory approvals.

American Airlines and JetSmart service to and within South America

Norwegian sells Argentinian subsidiary to JetSmart

Norwegian Air Shuttle has signed an agreement for the sale of 100 percent of its Argentinian subsidiary Norwegian Air Argentina (NAA) to JetSMART Airlines.

“We’re taking necessary steps to return to profitability,” said acting CEO Geir Karlsen.

JetSMART will assume the NAA operation with immediate effect. To minimize the impact on passengers, JetSMART will continue to operate the NAA scheduled flights from Aeroparque airport. The parties expect that the integration process will take several months, and the Norwegian brand will be phased out in the domestic Argentinian network during this period.

Over the next six months, the three Boeing 737 currently operated by NAA will be replaced by JetSMART’s Airbus A320 aircraft. The three Boeing 737s will return to service for Norwegian in Europe.

“As Norwegian moves from growth to profitability, we are taking all the necessary actions required to ensure that Norwegian is well positioned going forward. Over the past few months we have made important changes to our route network to ensure long-term profitability. Attaining satisfactory profitability for a relatively small domestic operation has proved difficult to achieve, given the overall situation in the country. While most of NAA’s costs are denominated in dollars, revenue is obtained in pesos only, and the sharp depreciation of the peso against the dollar has created a significant gap between costs and revenue,” said acting CEO and CFO of Norwegian, Geir Karlsen.

Scheduled flights to be operated as plannedAll passengers who have purchased NAA flights will fly as planned.

NAA solely operates domestic flights within Argentina so the new agreement will not affect Norwegian’s long-haul flights between London and Buenos Aires. These are operated by the British subsidiary Norwegian Air UK.

Norwegian’s employees in NAA will, as per the agreement, be employed by JetSMART except for the company’s Argentina-based call center staff. They will continue as Norwegian employees providing customer services to JetSMART’s domestic Argentina operation and to our customers on our long-haul operation between Europe and South America.

“All our colleagues in Argentina deserve a word of recognition for their dedication and hard work. The past two years have proven eventful – not only have they built a fully-fledged airline from scratch, but they have also operated it to the highest professional standards. In doing so, they have earned for Norwegian the gratitude and respect of the Argentinian people,” said CEO of Norwegian Air Argentina, Ole Christian Melhus.

NAA received its Air Operator’s Certificate in January 2018 and started operations on 16th October that year.

The company currently operates a fleet of three Boeing 737-800s, with twenty daily flights across eight routes between Buenos Aires’ Aeroparque airport to Bariloche, Córdoba, Iguazú, Jujuy, Mendoza, Neuquén, Salta, and Ushuaia.

So far, NAA has carried 982,000 passengers.