American Airlines to explore cargo cooperation with JetSMART partnership

American Airlines and Chile-based low-cost carrier JetSMART signed a letter of intent to explore an American investment in JetSMART that would expand the U.S. carrier’s passenger network in South America. American Airlines expects to leverage the agreement to explore opportunities in the cargo sector. [caption id="attachment_96432" align="alignright" width="402"] Photo: JetSMART[/caption] Under the proposal, American Airlines would invest in JetSMART to gain a minority ownership stake, according to a release today. Furthermore, American Airlines and Arizona-based private equity firm Indigo Partners, JetSMART’s owner, will commit to providing capital to fund opportunities in the region. Indigo Partners’ investments include Wizz Air, Frontier Airlines, Cebu Pacific and others. “We do not currently have code sharing for cargo with JetSMART but will look at exploring relationship opportunities for cargo as a result of this agreement,” an American Airlines spokesperson told Air Cargo World . Although the spokesperson did not elaborate, the partnership could be potentially beneficial for tapping into Latin America’s pharmaceutical market, said Cathy Roberson, president of Logistics Trends & Insight and an Air Cargo World columnist. “I think it’s very beneficial because the Latin American market is one of the top [for] pharma,” Roberson said. “I wouldn’t be surprised if [American Airlines] takes a serious look at the U.S.-Latin America trade lane when it comes to pharmaceuticals.” JetSMART offers transport capabilities for a variety of cargo, including temperature-sensitive shipments like pharma, according to its website. Meanwhile, American Airlines Cargo continues to expand its cool-chain capabilities. For instance, in 2015 American Airlines opened a 25,000-square-foot facility in Philadelphia (PHL) designed for handling medical and science products, and in 2016 became the first U.S.-based carrier to obtain a CEIV Pharma certification from the International Air Transport Association (IATA). In April, American Airlines conducted trials in partnership with cold-chain packaging manufacturer CSafe Global and logistics data company CargoSense to show that its entire mainline fleet is suitable for cold-chain shipments, according to a past carrier statement. Although JetSMART’s passenger network covers Chile, Peru, Argentina, Brazil and Colombia, the carrier only offers cargo transport throughout its domestic network in Chile, including Santiago (SCL), Arica (ARI), Antofagasta (ANF), Punta Arenas (PUQ), Iquique (IQQ) and Puerto Montt (PMC). However, Roberson noted that the American Airlines and JetSMART partnership might be used to explore opportunities for expansion. “There is a lot of activity in the Chilean pharmaceutical market, but I really think the selling point would be to expand that throughout South America, and in particular to Brazil and Argentina,” Roberson said. “It makes sense, it really does. With their cargo capabilities, I think JetSMART could easily expand their [cargo] capabilities beyond Chile.”

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