Aviation Week's Window Seat Podcast · Aviation Week

JetSMART CEO On Low-Cost Strategy And Innovation

·20 min·1 clip

JetSmart's AI robot solves 60% of customer cases, slashing costs by 45% while boosting satisfaction.

This episode features an interview with Estuardo Ortiz, CEO of the South American low-cost carrier JetSMART, conducted by Aviation Week's Karen Walker at an industry forum in Lima. Ortiz explains JetSMART's founding vision to serve a continent of nearly 500 million people with low airfare penetration. The airline started in July 2017 and is about to carry its 50 millionth passenger, with an estimated 22% being first-time flyers. He cites South America's low tertiary capital of 0.5, compared to nearly 3 in the U.S., as a key market opportunity. JetSMART operates an all-Airbus fleet of 50 A320s and A321s, which Ortiz calls the youngest and most modern in the Americas. The carrier maintains a unit cost competitive with Ryanair by adhering strictly to an ultra-low-cost carrier (ULCC) model and offering unbundled, one-way fares. A major operational challenge involves managing seven or eight grounded aircraft due to engine issues, though Ortiz states the airline has adapted its plans accordingly. He highlights a successful AI customer service tool that now resolves over 60% of cases and reduced related costs by 45%. JetSMART holds a minority investment from and has a unique commercial alliance with American Airlines, featuring codeshares and mileage accrual/redemption. The airline has rapidly expanded into Colombia, Peru, Chile, and Argentina, where regulatory liberalization under President Milei allowed it to double capacity. Ortiz identifies further regulatory priorities, including opposing rules that would mandate bundled baggage fares. The conversation is professional, forward-looking, and grounded in specific operational and commercial details. Listeners interested in airline business models, low-cost carrier strategy, or the aviation market in Latin America will find this episode highly informative. Those seeking technical aviation deep dives or broader industry commentary might find its focused executive interview style less engaging.

As heard by us

JetSmart's low-cost thesis comes through in AI service, Airbus discipline, and steady growth.

Window Seat presents Estuardo Ortiz as the voice behind JetSmart's low-cost thesis for South America, where the airline sees a large market with limited LCC presence.

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Want a CEO's take on scaling a Chilean low-cost carrier across South America?

Read the full recommendation in PlayNext →

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