Low-Cost Airline Aims to Democratize Aviation in Latin America

Q: What is the impact that Arajet expects to have within the Latin American aerospace ecosystem?

A: We seek to develop our network of 54 destinations and mobilize about 7 million passengers per year, bringing an accessible product to the heart of Latin America. In Santo Domingo, the penetration of low-cost flights is around 3%. This is very low and an airline like Arajet is necessary to promote the democratization of aviation. Air travel should not be just for people who have a lot of money; traveling by plane should be a right for everyone.

On Aug. 8, 2022, we launched a promotional campaign on the arajet.com portal touting US$149 tickets sold out in 48 hours. Since then, sales have continued to increase. We have clients from the Dominican Republic, Mexico, Guatemala, San Salvador, San Jose, Costa Rica, Barranquilla, Cali, Cartagena, Medellin, Bogota, Lima, Quito, Guayaquil, Aruba, Curacao, Saint Martin and Jamaica.

Q: What are the main challenges and opportunities of starting commercial operations during the post-pandemic era?

A: Every time there is a great crisis, there are great opportunities. Arajet was able to take advantage of these opportunities thanks to its entrepreneurial nature. During the pandemic, the industry was depressed and we were able to take advantage and receive capitalization through Bain Capital, the largest fund in Massachusetts. Using these funds, we entered the industry, bought and leased airplanes, and signed contracts for parts. Many in the industry had lost their jobs due to the pandemic and we were able to recruit them from different parts of the world. The pandemic allowed us to put together all the pieces of an airline. Due to the industry’s competitiveness, this challenge would have been harder if the pandemic had not occurred.

Q: What have been the challenges that Arajet has faced while recruiting its workforce?

A: We apply best practices and have hired those who worked in airlines based in the EU, North America, Mexico and South America. We were able to attract talented vice presidents and directors who worked in the best low-cost airlines in the world. We also included Dominican talent with aeronautical knowledge. This is the first time for the Dominican Republic to have an airline in this category and we had to work closely with the Dominican government on fiscal, legislative, and regulatory issues. That is why this project took almost 10 years to realize.

Q: What is Arajet’s approach to modernization and sustainability?

A: We operate the most modern aircraft in our category, which is the Boeing 737 Max 8. These aircraft are new and modern, producing almost 70% less noise than those used by our competitors. The 737 Max 8 uses 14% less fuel and emits about 20% less carbon dioxide than others.

Boeing is our strategic partner in the Dominican Republic and it supports us through technical and flight maintenance. With this team, we have the opportunity to promote tourism that respects the environment. Our five aircraft are named after natural protected areas in the Dominican Republic. Arajet’s name has similar origins, as it is how Taino Indians called the macaw birds and we wanted our brand to be identified with the natural world.