Flybondi, aerial low cost of Argentina, signed a memorandum of understanding (MOU) with Airbus and Boeing for the purchase of up to 35 aircraft, in an investment estimated at US$ 1.7 billion. The expectation is that the new fleet will allow the company to expand its operations in the region, including new destinations in Brazil, especially in the Northeast.
The contribution will be led by Flybondi’s main shareholder, the North American fund COC Global Enterprise.
The deal includes 25 firm orders and 10 purchase options, allowing low cost expand its fleet by up to 230% in the next four years.
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The first deliveries are scheduled for the end of 2027, with the A220 arriving by 2029 and the 737 MAX 10 by 2030.
Of the total, 15 units will be the Airbus A220-300, with the possibility of purchasing another five, which will make Flybondi the first operator of the model in Latin America. The company also ordered 10 Boeing 737 MAX 10, with options for five more.
With the new aircraft, the company intends to expand the supply of seats on domestic routes, expand destinations and reduce emissions, according to Flybondi CEO, Mauricio Sana.
“The new fleet will allow us to consolidate markets outside Argentina and open new opportunities in Latin America and the Caribbean over the next five years,” said the executive during a press conference.
In the case of Brazil, Sana sees opportunities in the Northeast. “We have already talked about the potential of connecting Argentina to this region of Brazil. With the new fleet, we will have the technical conditions for this, but we still need to study”, he said, without detailing deadlines or destinations.
In addition to Brazil, the executive mentioned potential for expansion in Paraguay and Peru, with the resumption and launch of routes to Asunción and the beginning of the Iguazú-Lima connection. Sana also did not rule out evaluating opportunities in Colombia and Bolivia in the future, subject to the regulatory environment.
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Currently, Flybondi operates 32 routes, 22 domestic and 10 international. There are 23 destinations served, including cities in Brazil, Paraguay and, as of this week, Peru. In the country, the company already flies to Rio de Janeiro, Florianópolis, Salvador and Maceió.
Consolidation and competition
Amid the wave of consolidations in the sector, Sana denied that Flybondi is evaluating mergers or integrations with other groups. “We have no plans for mergers or consolidations. Independence is what allows us to invest in projects like this. At least for the next three or four years, we will remain independent”, he said.
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The executive recognized, however, that the competitive environment in the region has been changing. According to him, the Latin American market “is already polarized” between two large groups, Abra and Latam, which indicates a more concentrated scenario for the coming years.
Recently, Abra, the controller of Gol and Avianca, announced an agreement to integrate Chilean Sky into the group.
