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Ultra Air and JetSmart agreed terms of purchase and the Due Diligence process will begin, to reach a final agreement, This will be subject to the respective governmental approvals.
After one year of operation successfully in the Colombian market, Ultra Air and JetSmart Airlines have had the opportunity to evaluate the opportunity to acquire the 100% of Ultra Air company shares. In this way, the representatives of the companies have signed this Thursday 16 March a letter of understanding, with which a process of Due Diligence, that will allow JetSmart know the technical and financial information required by this type of negotiations. It is expected to complete this process in the following 30 days.
JetSmart wants to buy Ultra Air
As stipulated by the parties in the letter of understanding, after Due Diligence, and in case of confirming a final agreement, Ultra Air y JetSMART Airlines, proceed with the submission of said purchase agreement, to the review and approval of the authorities, as established by the rules for this type of transaction.
For his part, the President and CEO of Ultra Air, William Shaw, highlighted:
”For us at Ultra Air it is very satisfying to register the purchase interest of an airline like JetSMART, whose trajectory of development and growth denotes seriousness and reliability. While we advance in this stage of exploration and negotiation, Colombian travelers will be able to continue enjoying our friendly service in a reliable manner and at an ultra-low cost”.
During the process of Due Dilligence, Ultra Air will continue to operate under administrative parameters, operational and financial aspects of the current administration, without JetSMART having any responsibility or interference in the direction, operation, Ultra Air's services and/or finances.
Within the framework of this announcement, it is important to highlight that, in case of purchase, it would have a positive impact with regard to the consolidation of free competition in the air market, since the companies mentioned do not have matching routes. While Ultra Air is concentrated in routes to the interior of the country, at the moment JetSMART only operates to capital cities of the country from international destinations.
“The possible purchase of Ultra Air will empower it to offer more routes, affordable prices and more options for all passengers”, added Stuart Ortiz.
In addition, of the transaction, more dynamic competition would be guaranteed in the airline market Colombia, whose rearrangement demands travel options with lower rates for all Colombians, what would occur from an increase in connectivity with the consequent potentialization of tourism, which is one of the main objectives in the business field of the country.
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