US-based low-cost carrier specialist Indigo Partners has acquired an unspecified amount of equity in Argentine start-up Alas del Sur (Córdoba Int'l), Chile's El Mercurio newspaper has reported.

Citing sources familiar with developments, the report said the purchase took place on Thursday, June 28, via Indigo's JetSMART (JA, Santiago de Chile Int'l) unit, based in Chile. Although not officially confirmed, the deal has garnered approval from the Argentine Ministry of Transport. While the extent of the purchase was not revealed, Argentine law requires at least 51% of a locally-registered carrier to be controlled by citizens or related entities.

Alas del Sur is controlled by Argentine businessman Damián Toscano and other partners and has been granted route authorities for multiple domestic and international city pairs. It has also added an MD-88, N218JP (msn 53305), to its books presumably as part of its AOC drive.

The start-up had earlier been linked to talks with various Chinese investors although their outcome is currently unknown.

For its part, Indigo Partners owns/has significant shareholdings in JetSMART in Chile, Volaris in Mexico, Frontier Airlines in the United States, and Wizz Air in Hungary.