Uruguay’s new national airline with Wet-Leased A220s

Uruguay may soon welcome a new national airline if plans by the startup Sociedad Uruguaya de Aviación (SUA) come to fruition. First officially unveiled in 2024 during the Fitur international travel trade show in Madrid, SUA revealed last week its intention to operate with Airbus A220-300 aircraft under a wet-lease agreement with airBaltic, making it the first airline in Latin America to use this model. According to reports, the wet-lease fleet will provide support throughout the certification process and as temporary equipment until SUA's fleet arrives. SUA's operational plans will be further detailed at an event on January 28, 2025, at Carrasco International Airport (MVD) in Montevideo. SUA’s business model involves launching operations with a fleet of six Airbus A220s within the first 18 months and expanding to ten aircraft within three years. Within five years, the airline plans to create the first A220 maintenance and training center in Latin America, including a full-flight Category D simulator for pilot training. The project aims to generate 300 direct jobs and 1,500 indirect jobs in Uruguay while introducing airBaltic's ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing model to the region. Challenges in the Uruguayan Market Uruguay’s aviation market has historically resisted the incorporation of private capital-backed airlines since Pluna's liquidation in 2013. Previous ventures such as BQB Líneas Aéreas, Alas Uruguay, and Amaszonas faced significant challenges, including the country’s small market size and unfavorable economic conditions. Existing carriers, including LATAM, Aerolíneas Argentinas, Azul, JetSmart, and Avianca, currently offer international connectivity to Uruguay. However, efforts to increase capacity in Montevideo have often failed due to insufficient demand. For instance, JetSmart's attempt to add routes from Buenos Aires ended shortly after launching. Given this history, SUA’s success will depend on its ability to differentiate itself through its fleet, operational strategy, and partnerships while addressing Uruguay’s aviation market's structural limitations. The venture has garnered support from the Uruguayan government and secured significant private investment, reportedly from Saudi sources. This aligns with the National Airport System’s efforts to modernize infrastructure across Salto, Paysandú, Rivera, and Punta del Este. However, SUA must still obtain its Air Operator Certificate (AOC) and ensure the A220 receives its type certificate in Uruguay before launching operations. Uruguay has lacked a national airline since the liquidation of flag carrier Pluna in 2013. Previous attempts to reestablish a local carrier, including BQB Líneas Aéreas (2010-2015), Alas Uruguay, and Bolivia’s Amaszonas (ceased in 2023), have all been short-lived. The airline’s founder and CEO, Antonio Rama, is a Boeing 777 captain for Qatar Airways and has prior experience in launching airlines. Rama founded U-Air, a low-cost carrier that operated briefly in Uruguay from 2003 to 2005 and was considered a pioneer in the region then.

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