American Airways and its price range airline accomplice JetSmart are figuring out the main points to deliver AAdvantage miles redemptions to the South American provider.
The airways have confronted “some challenges” rolling out AAdvantage as JetSmart’s loyalty program, mentioned Victor Mejia, chief business officer of JetSmart, on the Routes Americas convention in Nassau, Bahamas, on Tuesday.
American and JetSmart first unveiled plans for the latter to undertake AAdvantage as its personal loyalty program in July 2021 as a part of an funding by the previous. A key side in that pact was realized in September 2024 when AAdvantage members have been capable of earn miles and Loyalty Factors on JetSmart flights throughout South America. Miles redemptions have been anticipated by the top of the 12 months however have but to start.
AvGeek insider: Behind the scenes at American’s sprawling Tulsa upkeep facility
AAdvantage redemptions are coming “very quickly” to JetSmart flights, Mejia mentioned when requested in regards to the delay. Whereas he wouldn’t specify a date, he did say it might be this 12 months.
“There’s an essential buyer base in Latin America that, perhaps, does not have sufficient AAdvantage miles for a ticket to the U.S. however have sufficient for a one-hour flight on us,” he mentioned.
That buyer base is essential to each American and JetSmart.
American is the most important U.S. airline in Latin America, the place it has a large variety of AAdvantage members, executives have mentioned. This system, in keeping with a 2021 investor presentation, is among the many largest airline loyalty applications on the earth with greater than 115 million members globally.
The U.S. provider has taken a two-pronged strategy to serving these AAdvantage members in Latin America. It has an fairness partnership with Gol Airways within the Brazilian market, with JetSmart protecting a lot of the remainder of South America. American adopted the technique after its longtime accomplice LATAM shifted its allegiance to Delta Air Strains in 2019.
Each day Publication
Reward your inbox with the TPG Each day e-newsletter
Be a part of over 700,000 readers for breaking information, in-depth guides and unique offers from TPG’s specialists
JetSmart has native operations in Argentina, Chile, Colombia and Peru, and massive progress plans for the years forward. The Chilean provider goals to greater than double its fleet from 44 Airbus A320-family planes in the present day to 100-plus plane by the top of the last decade.
Worth added: Now you can lastly earn miles, Loyalty Factors from paid American Airways upgrades
Indigo Companions, the non-public fairness agency behind price range carriers Frontier Airways and Wizz Air, owns nearly all of JetSmart and American holds a roughly 35% stake.
“Funding from our facet leads right into a home growth [at JetSmart], which permits us to broaden our long-haul,” mentioned Anmol Bhargava, vp of worldwide alliances and partnerships at American, in a 2023 interview. “It simply turns into a round wheel for our companions.”
JetSmart has expansive plans for its new plane as they arrive, Mejia mentioned. That features filling out its home and intra-South America networks, particularly in Argentina and Colombia, and increasing north from Colombia to locations within the U.S., Caribbean and Mexico.
Within the meantime, JetSmart is already benefiting from its adoption of AAdvantage final 12 months. Almost 10% of vacationers embrace an AAdvantage quantity on their reservation in the present day, Mejia mentioned. And the proportion is predicted to develop as soon as miles redemptions come on-line.
The airline can also be within the means of increasing its codeshare partnership with American to incorporate Colombia, he added. JetSmart anticipates having approvals in hand and the pact carried out by the top of the 12 months.
American and JetSmart at present codeshare in Chile and Peru, and on choose flights in Argentina.
Associated studying:
