The low cost airline Ultra Air announced this Wednesday that as of Thursday it will suspend its operation in Colombia by “adverse macroeconomic situations for the industry“, Between other reasons.
“Ultra Air is unable to continue operating and offers excuses to the employees, customers, suppliers and other stakeholders 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 projectthe company said in a statement.
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This is the second airline to suspend operations in Colombia in recent weeks, as Viva Air made that decision on February 27 due to serious financial problems that left thousands of passengers on the ground.
Ultra Air has been operating in Colombia for a year, during which it has transported more than 2 million passengers and has achieved more than 8% of the air market and generated more than 1,200 direct and indirect jobs.
The case of Ultra Air
Last Thursday, the Transportation Superintendence de Colombia adopted prevention and surveillance measures for Ultra Air to comply with its obligations to passengers and creditors because the company has “low liquidity”.
The decision was made after a day before JetSmartbased on Chili and controlled by the US investment fund Indigo Partnerswithdrew from the letter of understanding signed two weeks ago for the possible purchase of Ultra Air.
Under this decision, the Superintendency explained, Ultra Air must implement a work plan detailing a list broken down by routes, which must include the schedule of commercial flights for each day of the week, “where the aircraft and crew personnel are identified for each of the frequencies”.
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However, the low-cost airline assured today 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 to operating 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 the supplies and services necessary for the operation, which is unusual in this industry”, added the company.
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