PERU: JetSMART Will Fly To Peru Soon

JetSMART plans to add international service next year, as it highlights growth potential for low-cost carriers in Latin America.

The Santiago-based airline, which launched revenue service in late July, now operates to a handful of cities and has announced plans for a network of eight domestic destinations in the coming months.

In 2018, JetSMART wants to add flights to Peru, chief executive Estuardo Ortiz said.

Peru is among the largest markets from Chile, he says, calling the neighbouring country a natural fit for JetSMART's international ambitions.

Backed by Indigo Partners, JetSMART operates two Airbus A320s and expects to receive its third aircraft in September.

It plans to end 2017 with a fleet of at least nine A320s, says Ortiz.

The airline's first two A320s are new aircraft leased from CDB Aviation Lease Finance, Flight Fleets Analyzer shows.

Ortiz says the carrier plans to lease aircraft for now, to allow it to focus on growth.

Ortiz is so far pleased with the airline's initial revenue trends and load factors, although he declines to reveal numbers.

But he says the airline has been pleasantly surprised with the response towards the ultra low-cost carrier model, which is not widespread in South America.

The region is dominated by full-service carriers, although the recent year has seen a new breed of low-cost carriers such as JetSMART.

We've been able to get the word out, and the reception has been surprisingly very positive, says Ortiz. It's a really good start for the LCC model.

He says the airline's online booking process is structured in a way that makes it clear to passengers that they have to pay for amenities like baggage.

Our website takes you by the hand through the booking process, he says. Up to 60% of JetSMART passengers pay some form of baggage fee.

There are currently no plans for Indigo to bring in other investors into JetSMART, says Ortiz, who was Avianca's chief revenue officer before he left the airline in 2016.

JetSMART is also not planning subsidiaries in other parts of Latin America - an expansion strategy that has been taken by the region's more mature discounters Volaris and Viva Air Group.

We want to keep it modest, says Ortiz of the airline's immediate growth plans. I would rather do, than talk.


Tourism Observer

CHILE: JetSMART To Expand Into Argentina

JetSMART will expand into Argentina in December, and plans to launch domestic service as soon as mid-2019.

The airline has embarked on the process of obtaining an air operator's certificate in Argentina, and expects to begin sales in early 2019 for flights beginning mid-2019, JetSMART chief executive Estuardo Ortiz says.

The domestic service in Argentina will follow the airline's launch of flights between Chile and Argentina from December, with five routes planned.

JetSMART began flights in Chile in July 2017.

It will connect Santiago with Mendoza from 11 December, followed by Cordoba on 14 December. On 17 December, it will begin service between La Serena and Cordoba.

Flights between La Serena and Mendoza will launch 18 December. On 2 January, service between Santiago and Buenos Aires El Palomar will begin.

Despite a deluge of airline interest in Argentina following the liberalisation of the aviation industry in the country, Ortiz says JetSMART is bullish about the market.

It's a large market in terms of population and geography, he explains. We believe that with the recent progress made by the government to remove the fare floor, it will allow us to offer low fares to stimulate the market.

Argentina removed a minimum fare rule in August, allowing airlines to price their fares freely, in a move that was welcomed by all carriers.

Ortiz believes there is enormous potential to stimulate air travel in Argentina, pointing to the lower number of trips per capita compared to other more mature Latin American aviation markets like Chile and Colombia.

We see potential for the market to grow two to three-fold, Ortiz says.

JetSMART currently operates mostly within Chile, with a lone international route to Lima. It has a fleet of five Airbus A320s but will add another six by early 2019 for a total of 11. In the second half of 2019, it will add eight A320neos that will be leased.

The airline's owner Indigo Partners firmed up an order for A320neo family aircraft in late 2017, including 70 aircraft for JetSMART.

Deliveries of these will begin in 2021, says Ortiz.


Tourism Observer