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CAPA Latin America Summit: JetSMART cites numerous opportunities for expansion

Analysis

JetSMART is casting a wide net through South America for potential expansion, but the ULCC start-up aims to create a stable platform in Chile before aggressively expanding to other countries in the region. However, the airline plans to use rights it has secured for service from Santiago to Lima in the near future.

Backed by the ULCC specialist Indigo Partners, JetSMART is learning the nuances of operating within Latin America, including navigating complex ownership rules imposed by some countries, and establishing a home market base where rivals have already positioned themselves to compete with new low cost entrants.

Although there has previously been some discussion about Indigo making moves in the Canadian market as aspiring ULCCs are working toward a launch, the company is not yet ready to commit to Canada as it continues to study the country's regulations governing foreign airline ownership.

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