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JetSmart is ready to expand its operations in Argentina if the country’s new government follows through on rhetoric to further liberalize the aviation sector.
Since taking office in late 2023, Argentine president Javier Milei has made declarations to privatize some state-run companies, including flag-carrier Aerolineas Argentinas, and adopt an open skies policy. Argentina has also signed a memorandum of understanding with Brazil to expand air service between the two countries.
Speaking at Routes Americas 2024 in Bogota, JetSmart CEO Estuardo Ortiz said there is a “tremendous opportunity” for airlines to grow in Argentina—and insisted the Chilean ULCC is ready to act should Milei’s declarations come to pass.
“I think we’re in a historical moment in the aviation industry in Argentina,” Ortiz said. “The big question is whether there is the political and social support to implement the measures. But we have seen changes in the past three months that we have not seen in the previous four years. So, it’s encouraging.”
He added that further liberalization could offer a “completely different scenario for [JetSmart] in Argentina” before the end of the year, hinting that the carrier is willing to expand its eight-strong aircraft fleet in the country.
“We’ve been investing in Argentina since 2019 ... we have a very large orderbook and can take advantage of the opportunity if the conditions are right,” Ortiz said. “For now, we’re watching very carefully everything that’s going on, and I’m trying to be cautiously optimistic. But, so far, it’s going in the right direction.”
JetSmart entered Argentina’s domestic market shortly before the pandemic after acquiring Norwegian Air Argentina in December 2019. The airline currently operates 23 domestic routes in the country, with an 11.3% capacity share of the market, according to OAG Schedules Analyser data. The carrier also flies eight international routes.
Overall, JetSmart has a fleet of 35 Airbus A320-family aircraft across its four AOCs in Chile, Argentina, Peru, and Colombia, with more than 80 on order. The airline launched its Colombian unit on March 14, providing a new challenger for the likes of Avianca, LATAM Airlines Group, and Wingo following the demise of Viva and Ultra Air during 2023.
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