Ultra low-cost carrier JetSmart has signed a Letter of Understanding thus kicking off the process to acquire 100% of the shares in Colombia's Ultra Air.
The next 30 days will allow JetSMART to conduct due diligence on the technical and financial data from Ultra Air. Any agreement thereafter will need to obtain the blessing of local authorities.
Ultra Air will continue to operate independently of JetSMART until the deal is closed.
The news comes on the back of the cessation of Viva Air's operations, and rumors that Ultra Air is facing financial problems – rumors which were strongly denied by the Colombian airline founded by industry veteran William Shaw.
JetsSmart had already planned to enter the Colombian domestic market, having filed the paperwork recently.