JetSmart wants to start domestic flights in Brazil by 2028

Chilean airline JetSmart is intensifying its international operations in Brazil. From July onwards, the number of routes operated will increase from seven to ten. Two new cities will be incorporated into the network: Curitiba and Porto Alegre. The company does not hide a greater challenge: by 2028, it intends to operate domestic flights in the country, a highly concentrated market, where three companies hold a 99.5% share, according to the National Civil Aviation Agency (Anac).

“Brazil is part of JetSmart’s future strategy”, says Veronica Álvarez, international markets manager. Currently, the company operates domestic flights in Argentina, Chile, Colombia and Peru, in addition to international flights in South America.

The decision to operate domestic flights in Brazil will depend on the company’s strategic planning and the consolidation of the markets in which it operates. In March, the company began domestic operations in Colombia, the second most important market in South America. “We identified pent-up demand there, especially after some companies exited the market last year.”

JetSmart has some tricks up its sleeve. One of them is the ease of expanding the fleet, due to the orders it has. Currently, the company operates 35 Airbus 320neo and 321neo aircraft. The expectation is to increase to 50 next year and reach around 120 in 2028.

Experts consulted by People’s Gazette point out that one of the challenges in entering continental markets is the scale to start operations. “When we enter, it will be with force. It is not possible to operate a market as large as the Brazilian one with just three to five planes”, says the executive of the Chilean company.

Another advantage of the Chilean company is being linked to a group with strong expertise in the airline market. JetSmart belongs to the American fund Indigo Partners, which also has airlines operating in Asia (Cebu Pacific), Canada (Lynx), the United States (Frontier), Europe (Wizz) and Mexico (Volaris).

Attention to the solidity and stability of the economy

Market conditions will be fundamental for JetSmart to advance its plans for Brazil. “We need a solid economy and stability to guarantee investments. The government needs to ensure healthy competition between companies”, says Álvarez.

Legal uncertainty has proven to be an obstacle to the entry of new airlines into the Brazilian market. “It’s a subject that scares potential investors,” said Jurema Monteiro, president of the Brazilian Association of Airlines (Abear), in an interview with People’s Gazette.

Although Brazil has a good legal framework for the sector, which allows the entry of companies with 100% foreign capital, Marcelo Guaranys, a specialist in aeronautical law at Demarest Advogados and former president of Anac, says that there are frequent attempts to modify it.

One of the issues frequently discussed is the charge for checked baggage in the hold of aircraft. The practice was authorized by Anac in 2016 and implemented in 2017, but five years later, Congress tried to overturn it. The intention was vetoed by the then president, Jair Bolsonaro (PL). The justification was that the measure would lead airlines to review ticket prices due to increased operating costs.

Guaranys remembers that baggage charges are a fundamental issue for the operation of low-cost and ultra-low-cost companies, a segment of which JetSmart is a part.

According to Álvarez, it is important that passengers can travel with the advantages of this model, which is the reduction in air ticket prices. At JetSmart, 30% of passengers travel without luggage.

JetSmart wants to expand international operations from Brazil

The executive highlighted that, until domestic operations begin, the company intends to expand international flight operations from Brazil. Currently, it has frequencies from the airports of Florianópolis, Foz do Iguaçu, Rio de Janeiro (Tom Jobim/Galeão) and São Paulo (Guarulhos).

“We are initially consolidating operations in the south of the country. We see great opportunities in the Northeast”, says Álvarez.

Another possibility is to transform seasonal operations, such as those from Curitiba to Santiago de Chile, into permanent ones. “We are going to test the markets”, highlights the executive.