US low-cost carrier investment specialists Indigo Partners LLC have formally announced their intention to enter the South American market through their Chilean venture, JetSMART (JA, Santiago de Chile).
Speaking during an unveiling ceremony late last week, Indigo managing partner Bill Franke hailed Chile's economic stability, strong air traffic growth, and supportive regulatory environment as the firm's reasons for investing in Chile.
"There are many reasons why Chile is an attractive entry point for the launch of a budget airline," Franke was quoted by El Economista. "It has Open Skies and bilateral treaties with neighboring countries, which will allow us to expand our network."
JetSMART's chief executive, Estuardo Ortiz, said he expects to complete certification and launch operations later this year with three A320s growing to nine by the end of 2018. In terms of network, the airline will operate locally before expanding into the international market. In all, USD100 million will be invested over the next five years, he said.
The Arizona-based private equity investment firm's portfolio of carriers includes Frontier Airlines (F9, Denver International), Mexico's Volaris (Y4, México City International), and Hungary's Wizz Air (W6, Budapest). Talks about acquiring a stake in Enerjet (Calgary) in Canada are currently ongoing.
