JetSmart Cancels Buenos Aires-Montevideo Route
JetSmart’s expectations were far from being met, it was explained.
Chilean budget carrier JetSmart has decided to discontinue its Buenos Aires-Montevideo route starting October 1 due to profitability issues. The route, operational for only four months, did not receive the expected subsidy from the Uruguayan government, leading to its closure.
JetSmart’s decision came as a surprise to Uruguay, with the government not granting the requested US$100,000 subsidy due to its excessive nature. This move has also impacted Aerolíneas Argentinas, the other operator on the route, causing them to adjust their fares to remain competitive.
The cancelation has left air travel between the capitals in uncertainty, with talks of privatization and growing labor protests affecting travelers. JetSmart cited unfavorable conditions, high taxes, and competition as reasons for the route’s closure.
Despite some optimism from Uruguay, JetSmart’s CEO remains skeptical about finding a solution without government assistance. This move highlights the challenges airlines face in establishing routes in competitive markets.
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