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American Air and JetSMART usher in change for Latin America

Premium Analysis

When Indigo Partners managing director William Franke declared during CAPA Live in Jul-2021 that possible tie-ups between ultra-low cost carriers (ULCCs) and full service operators could emerge in a post pandemic world, he may have had something in mind.

The South American ULCC operator JetSMART, which is owned by Indigo, and American Airlines have now declared their intent to forge a partnership that includes codesharing and American's proposal to take a minority stake in JetSMART.

And as that relationship starts to take shape, Delta and LATAM Airlines Group are stressing the importance of their proposed JV as a counterbalance to what they deem as American's dominance in the region.

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