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Avianca and Latam offered protection rates for travelers affected by the Ultra Air crisis, which announced that as of Thursday, March 30, it will suspend its operation in Colombia due to “adverse macroeconomic situations for the industry.”
The low-cost airline Ultra Air will suspend its operation in Colombia as of this Thursday, March 30, arguing “adverse macroeconomic situations for the industry,” among others.
“Ultra Air is unable to continue operating and offers excuses to employees, customers, suppliers and other interest groups that are affected by this situation and reiterates its commitment to work until the last moment to minimize the impact on the people who trusted in this project,” the airline said.
Ultra Air is the second airline to suspend operations in Colombia in recent weeksafter Viva Air made that decision on February 27 due to serious financial problems that left thousands of passengers on the ground.
Ultra Air had been operating in Colombia for one year, during which it had transported more than two million passengers and captured more than 8% of the air market. It had a payroll of 1,200 people between direct and indirect jobs.
Colombia’s Superintendence of Transport adopted prevention and surveillance measures last week so that Ultra Air would meet its obligations to passengers and creditors because the company has “low liquidity.”
Yesterday JetSmart, based in Chile and controlled by the US investment fund Indigo Partners, withdrew from the letter of understanding signed two weeks ago for the possible purchase of the company.
The airline said that “adverse macroeconomic situations for the industry, such as the increase in the cost of fuel and the exchange rate, generated a substantial increase in costs” for airlines, which “led them to operate at a loss in recent months.” .
“Additionally, the suspension of operations of the third largest airline in the country (Viva Air) put industry suppliers and aircraft lessors on alert, who began to demand immediate payments and even prepayments for supplies and services necessary to operation, which is unusual in this industry,” the company added.
What will happen to the purchased tickets?
Avianca and Latam offered help to passengers affected by the Ultra Air crisis. Avianca, the company with the largest operation in the Colombian market, announced that Ultra passengers with confirmed tickets from March 29 to April 1 “will be able to go to the airports to be relocated free of charge and according to availability.”
At the same time that they will be able to “access special protection rates until April 9 exclusively in airport sales offices.”
Latam reported that “it will make protection fares available per trip for Ultra travelers with tickets issued with a travel date until April 15.” According to the company, they seek to “offer an option for those passengers who cannot lose their travel plans for the Easter season.”
The Ministry of Transport requested Ultra Air for the passenger list for next week and will demand rescheduling, cash payment of the tickets sold, or that other airlines can serve the flights.
with EFE
