JetSmart withdrew from acquiring Ultra Air

JetSmart is one of the strongest airlines in South America. EFE

The Chilean airline JetSmart canceled the letter of understanding with which it expressed its intention to acquire Ultra Air. With this, he gave up the intention to agree to the purchase of the Colombian low-cost airline. This, after analyzing the conditions that were included in the negotiation.

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According to the airline, it will focus on the pending process to recertify itself as an air operator in Colombia, where it will have to participate in the allocation of schedules and routes at the El Dorado airport in Bogotá.

“We have made progress in the process and we consider that, due to various factors, it is not possible to continue with the intention to purchase Ultra Air and we have canceled the letter of understanding and terminated the process,” said JetSmart executive director Estuardo Ortiz. , it’s a statement.

The businessman noted that the commitment and trust in the Colombian market remains firm, as stated at this time. Similarly, he assured that JetSmart will continue to focus on meeting the requirements of said certification process, working closely with Civil Aeronautics (Aerocivil), which has performed with the highest level of professionalism.

“In this way, we hope to obtain our air operator permit in Colombia, with a view to starting the operation as soon as possible and thus being able to participate in the slot reassignment process at the El Dorado airport,” said Ortiz.

The Chilean airline also explained that if the transaction took place, more dynamic competition would be guaranteed in the Colombian air market, whose reorganization demands travel options with lower fares for all, which would occur from an increase in connectivity with the consequent potentialization of tourism, which is one of the main objectives in the business field of the country.

JetSmart’s decision is known a week after having released the letter of understanding with which it expressed its intention to acquire Ultra Air. On March 17, precisely, the Chilean airline shared a document in which it specified that it was interested in buying the Colombian low-cost airline.

“The representatives of the companies signed a letter of understanding this Thursday, March 16, with which a Due Diligence process begins, which will allow JetSmart to know the technical and financial information that this type of negotiation demands. The process is expected to be finalized in the following 30 days”, a statement presented by the multinational was read.

However, the Minister of Transportation, Guillermo Reyes, expressed his concern about the finances of the Colombian airline Ultra Air, since it could fall into the same dynamic as Viva Air, which continued to sell tickets to create an economic “cushion” in the face of the crisis. through which it passes.

“I am very concerned about the situation of the financial statements of different airlines. Of course, the issue of Viva was evident, they continued to sell tickets even though they knew they were going to leave the market. And they sought to address the crisis situation with a future sale, knowing that they were not going to continue operating. We are concerned about financial statements where liabilities exceed assets, as is happening with Ultra, that it may end up in a similar situation and those who are buying tickets may end up in the same situation,” Reyes told W Radio.

JetSmart had raised the possibility of implementing national routes in Colombia, since for now it only operates with international destinations from the main cities of the country.

It may interest you: Viva Air will not operate again, assured the Minister of Transportation

“The possible purchase of Ultra Air will empower it to offer more routes, affordable prices and more options to all passengers,” said the executive director of JetSmart, Estuardo Ortiz.

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