American Airways and JetSMART Signal Letter of Intent to Create the Broadest and Most Rewarding Community within the Americas

• Prospects would be capable to earn and redeem AAdvantage miles on JetSMART flights.
• Broad connectivity and sturdy loyalty program would create a compelling buyer providing in Latin America.
• Proposed codeshare settlement between the 2 airways would create extra choices for patrons touring between the US and South America.

FORT WORTH, Texas — American Airways and JetSMART have signed a letter of intent to create the broadest community and most rewarding buyer providing within the Americas. This proposed partnership would uniquely tie collectively the full-service, international presence of American with the complementary community of ultra-low-cost provider JetSMART in South America to supply aggressive fares and expanded journey choices for flyers all through North and South America.

“This proposed funding in JetSMART would give prospects entry to the most important community, lowest fares and finest journey loyalty program within the Americas,” stated Vasu Raja, American’s Chief Income Officer. “This could allow JetSMART and American to develop aggressively and profitably throughout Latin America as demand recovers, whereas preserving the perfect points of every provider’s enterprise mannequin. This partnership would additionally make AAdvantage the most important journey loyalty program within the Americas, creating extra methods for patrons to earn journey rewards and use their miles to entry new locations and elite advantages globally, regardless of whether or not they earn in Latin or North America.”

Working from Chile and Argentina, JetSMART is a portfolio airline of Indigo Companions, one of many world’s premier builders of recent technology ultra-low-cost airways. JetSMART operates a contemporary fleet of Airbus A320 plane and presents short-haul home and worldwide service to 33 locations all through South America. American has served Latin America since 1942 and presents service to 17 locations in South America from its U.S. hubs in Dallas-Fort Price, Miami and New York. Via the 2 airways’ codeshare, prospects would be capable to journey seamlessly all through the Americas.

“We stay up for working with American to proceed delivering low fares and buyer selection all through South America,” stated Invoice Franke, Founder and Managing Accomplice of Indigo Companions.

Estuardo Ortiz, Chief Government Officer of JetSMART, added, “By connecting and rising our respective networks, and sustaining our distinct enterprise fashions, we see a compelling worth proposition. When accomplished, this proposed partnership would speed up JetSMART’s path to turning into the main South American low-cost provider whereas increasing service for American’s prospects.”

Underneath the proposed transaction, American would put money into JetSMART to facilitate this progress and provides American a minority possession stake within the short-haul South American provider. Moreover, American and Indigo Companions would collectively commit to offer extra capital to fund potential future alternatives within the area. American can strengthen and develop its South American community by means of this proposed partnership to draw extra vacationers in additional markets. This proposed partnership, together with others in Latin America, would additionally give American prospects entry to extra low fares and journey choices on a community that’s twice as huge as different alliances.

The supposed investments and codeshare agreements are topic to definitive documentation and any required governmental and regulatory approvals.