LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

American Airlines Plans To Acquire Minority Stake In JetSMART

by John Ollila
July 29, 2021
Reading Time: 4 mins read
1

Today, American Airlines announced that it had signed a Letter of Intent with a Chilean airline called JetSMART that also has some operations in Argentina.

American plans to acquire a minority stake of the airline, and AAdvantage members could earn and redeem their miles for JetSMART flights in the future.

You can access AA here and JetSMART here.

ADVERTISEMENT

AA’s & JetSMART’s combined Latin America network:

JetSMART’s package:

AA’s release about the deal:

American Airlines and JetSMART Sign Letter of Intent to Create the Broadest and Most Rewarding Network in the Americas

  • 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.

FORT WORTH, Texas — 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.

“This proposed investment in JetSMART would give customers access to the largest network, lowest fares and best travel loyalty program in the Americas,” said Vasu Raja, American’s Chief Revenue Officer. “This would enable JetSMART and American to grow aggressively and profitably across Latin America as demand recovers, while preserving the best aspects of each carrier’s business model. This partnership would also make AAdvantage the largest travel loyalty program in the Americas, creating more ways for customers to earn travel rewards and use their miles to access new destinations and elite benefits globally, no matter whether they earn in Latin or North America.”

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.

“We look forward to working with American to continue delivering low fares and customer choice throughout South America,” said Bill Franke, Founder and Managing Partner of Indigo Partners.

Estuardo Ortiz, Chief Executive Officer of JetSMART, added, “By connecting and growing our respective networks, and maintaining our distinct business models, we see a compelling value proposition. When completed, this proposed partnership would accelerate JetSMART’s path to becoming the leading South American low-cost carrier while expanding service for American’s customers.”

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

About American Airlines Group

American’s purpose is to care for people on life’s journey. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.

About JetSMART

Founded in 2016, JetSMART Airlines is an Ultra-Low-Cost Carrier with principal operations in Chile and Argentina. The Company operates a fleet of 20 Airbus A320-family aircraft with an order for additional 79 Airbus A320-family aircraft and serves 33 destinations. JetSMART’s customers benefit from an expansive route network with many routes not offered by competing airlines.

About Indigo

Indigo Partners LLC is a private equity firm based in Phoenix, Arizona, which focuses on investments in the air transportation sector. Current investments include Wizz Air, Frontier Airlines, Volaris, JetSMART, Cebu Pacific and Enerjet (a Canadian startup).

Conclusion

American Airlines has struggled with its connectivity within Latin America after Delta acquired a stake in LATAM, who then exited Oneworld and severed its ties with AA (and later filed for bankruptcy reorganization).

American re-partnered with GOL in Brazil, and now this new partnership with JetSMART for mainly Chile.

I am unsure how eager premium cabin fliers and AAdvantage elite members are willing to fly on one of the ultra-LCCs that Indigo Partners has started and invested in.

I have flown few times with Sky, another ultra-LCC airline based in Chile, and if you keep your expectations low and the price is right, I have no issues using them. Just remember that, like with this JetSMART, you pay extra for everything.

Previous Post

Conrad Bora Bora Nui Award Availability Wide Open Using Honors Points

Next Post

Marriott Bonvoy Reward-a-Friend Promotion Is Back!

Related Articles

American Airlines Places Order For 20 Boom Supersonic Overture Aircraft

American Airlines Places Order For 20 Boom Supersonic Overture Aircraft

John Ollila
August 16, 2022
4

American Airlines decided to follow United Airlines, which placed an order with Boom in June 2021 (read more here), by...

Read & Weep: American Airlines Has Now Converted All 500-Mile Upgrades To Loyalty Points

Read & Weep: American Airlines Has Now Converted All 500-Mile Upgrades To Loyalty Points

Sebastian Powell
August 15, 2022
12

As American Airlines AAdvantage previously announced, they have now changed the way elite upgrades work for their tier members and...

Airfare of the Day [Business Class] AMERICAN AIRLINES Milan to Chicago from 1,609€

Airfare of the Day [Business Class] AMERICAN AIRLINES Milan to Chicago from 1,609€

Freddo Zabaleta
August 12, 2022

Today’s Airfare of the Day goes to American Airlines and their business class excursion fares for round trip travel departing...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Hilton Honors Double Your Stay Promotion For Stays September 6 – December 31, 2022
Hilton Honors

Hilton Honors Double Your Stay Promotion For Stays September 6 – December 31, 2022

August 17, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
World Of Hyatt “Healthcare Heroes” 30% To 50% Off Rate Plan For Stays Through June 30, 2021
Hyatt - World of Hyatt

Hyatt “Healthcare Heroes” 30% To 50% Off Rate For Stays Through December 31, 2022

June 11, 2022
Traveling To Europe? You Might Want To Buy Some Air Tags For Your Luggage!
Airports

Traveling To Europe? You Might Want To Buy Some Air Tags For Your Luggage!

August 18, 2022
IHG Annual Lounge Membership Experience Case: InterContinental Le Grand Paris
IHG Rewards Club

IHG Annual Lounge Membership Experience Case: InterContinental Le Grand Paris

August 18, 2022

Top Categories

  • IHG Rewards Club
  • Marriott Bonvoy
  • Hilton Honors
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Shangri-La Golden Circle Points To Miles 30% Conversion Bonus Through August 31, 2022

Shangri-La Golden Circle Points To Miles 30% Conversion Bonus Through August 31, 2022

August 12, 2022
Club Life InterContinental Amstel

IHG Secret Award Flash Sale Has Returned!

August 17, 2022
Radisson Rewards Americas Buy Points 50% Bonus Sale Through March 31, 2022

Radisson Hotels Americas 50% Off Flash Sale For Stays Through September 30, 2022 (Book August 18)

August 18, 2022
Alaska Airlines & Qatar Airways Frequent Flier Partnership Launch December 15, 2020

Qatar Airways 20% Off Birthday Offer Ex-Europe (Check Your Email)

August 15, 2022
Qatar Airways Double Qmiles Singapore, Malaysia & Thailand Through March 31, 2022 (Book By November 26)

Qatar Airways Privilege Club Double Avios From Southeast Asia & India Through March 31, 2023

August 16, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents