JetSMART Pulls Out of Ultra Air Deal

Originally published on Airways

South American Ultra low-cost carrier JetSMART Airlines (JA) has revealed that it is no longer interested in purchasing Columbia-based Ultra Air (U0), and the Memorandum of Understanding (MOU) between the two airlines has been canceled. 

Ultra Air is a low-cost carrier based at José María Córdova International Airport (MDE) that operates ten domestic routes. In recent months, U0 has been struggling financially, so an acquisition would make sense for both airlines as JetSMART could add more services to Columbia and use Ultra Air’s existing infrastructure. 

JA had planned on purchasing U0 to create a larger footprint in Columbia. Now JetSMART will try to obtain a license to create its own airline in Columbia. Aerocivil, the Columbian aviation regulator, recently approved JetSMART to operate 27 domestic routes in Columbia. Utilising its Airbus A320 fleet, it plans on using Bogota El Dorado International Airport (BOG) as its central hub to launch operations.

Photo: Ultra Air.

About JetSMART

JetSMART is owned by US-based investment fund Indigo Partners which also owns European-based Wizz Air (W6), Mexico-based Volaris (Y4), and US-based Frontier Airlines (F9). Indigo Partners has previously stated that it was looking into acquiring Ultra Air. However, JetSMART commented that “diverse factors” triggered JetSMART to review the acquisition. 

Since its establishment in 2017, JetSMART has grown its presence across South America. It operates over 79 routes across the continent with a fleet of Airbus A320 family aircraft. The airline also has over 100 Airbus aircraft on order, expected to be delivered by 2027.