New ultra low cost carrier (ULCC) founded in 2017 by Indigo Partners (INZ) based in Phoenix Arizona USA. Domestic, regional, and international, passenger and cargo jet airplane services.
Santiago International Airport
Chile (Republic of Chile) was established in 1818, covers an area of 756,945 sq km, its population is 15 million, its capital city is Santiago de Chile, and its official language is Spanish.
February 2017: Arizona-based investment firm Indigo Partners (INZ) introduced its new ultra-low-cost carrier (ULCC), JetSMART (JSM), on February 3 in Santiago, Chile. Utilizing a fleet of new Airbus A320s, (JSM), the new (ULCC) expects to operate 3 aircraft by the end of the year, and 9 by the end of 2018.
(JSM) submitted its formal request for an air operator’s certificate (AOC) to the Chilean Civil Aviation Authority on January 26.
Indigo Partners (INZ), led by former Spirit Airlines (SPR) Chairman William Franke, has backed the development of several (ULCC)s over the past decade, including USA-based Frontier Airlines (FRO), Hungary’s Wizz Air (WZZ) and Mexico’s Volaris (VLS).
“In Chile [we] believe there is an overlooked customer segment wanting to fly, but for the right price,” Franke said. “Chile is an attractive entry point for the launch of a low-fare carrier, [it has] economic stability and aviation traffic growth; [a] growing economy; [b] supportive and fair regulatory environment; and open skies and strong bilateral treaties with neighboring countries.”
JetSMART will be headed by (CEO) Estuardo Ortiz, former Avianca (AVI) Holdings Executive VP & (COO) and (TACA) Airlines (TAC) Executive VP & (COO).
“The [ULCC] model at JetSMART will mean lower airfares for all Chileans, which will encourage non-fliers to fly and regular fliers to fly to various points in Chile and beyond,” Ortiz said.
“In Europe, low-cost carriers (LCC) account for 40% of all air travel. In the USA, they represent about 7% and the market share has grown for these companies by +10.3% in the last 3 years. By 2034, (LCC)s are expected to account for 21% of the world market,” Franke said. “We at Indigo (INZ) have spent the last 15 years developing and refining this business model and we believe that the arrival of a similar airline in Chile will be well received.”