American Airlines and JetSMART Announce Partnership
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 tie together the full-service, global presence of American with the complementary network of ultra-low-cost carrier JetSMART in South America. This will lead to expanded travel options for flyers throughout North and South America and hopefully more competitive fares as well.
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 Airlines on the other hand, has served Latin America since 1942. It currently offers service to 17 destinations in South America from its U.S. hubs in Dallas-Fort Worth, Miami and New York.
Under the proposed transaction, American would also 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.
Through the two airlines’ codeshare, customers would be able to travel seamlessly throughout the Americas. The intended investments and codeshare agreements are subject to definitive documentation and any required governmental and regulatory approvals.