JetSMART signs letter of understanding to purchase Ultra Air
In line with its interest in the Colombian air market, JetSMART Airlines has had the opportunity to evaluate the opportunity to acquire 100% of the shares of the company Ultra Air. Thus, representatives of the companies have signed a letter of understanding this Thursday, March 16, which initiates a Due Diligence process, which will allow JetSMART to know the technical and financial information required for this type of negotiations. This process is expected to be completed in the next 30 days.
As stipulated by the parties in the letter of understanding, after the Due Diligence, and in case a definitive agreement is confirmed, JetSMART Airlines and Ultra Air will proceed with the submission of the purchase agreement to the review and approval of the authorities, as established in the regulations for this type of transactions.
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“We believe in the potential of the Colombian market and we are determined to contribute and add to the development of tourism and employment in the country. We have seen the operational and commercial qualities of Ultra Air and have reached an agreement on the terms of the purchase of the airline. We look forward to moving forward efficiently with the Due Diligence and working closely with the respective approving authorities,” said JetSMART’s President and CEO, Estuardo Ortiz.
During the Due Diligence process, Ultra Air will continue to operate under the administrative, operational and financial parameters of the current management, without JetSMART having any responsibility or interference over the management, operation, services and/or finances of Ultra Air.
In the context of this announcement, it is important to highlight that, if the purchase is completed, it would have a positive impact on the consolidation of free competition in the air market, since the airlines in question do not have overlapping routes. While Ultra Air is focused on domestic routes, JetSMART currently only operates to the country’s capital cities from international destinations. “The possible purchase of Ultra Air will empower it to offer more routes, accessible prices and more options to all passengers”, added Estuardo Ortiz.
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