Arajet eyes US market expansion with new routes

Andrea Thompson

ByAndrea Thompson

September 18, 2024

Arajet CEO Victor Pacheco has expressed optimism about the Dominican Republic-based discount carrier’s potential entry into the U.S. market, following a recently negotiated Open Skies treaty.

The airline aims to launch routes to Miami, the New York area, and San Juan from Santo Domingo and Punta Cana by Christmas, although Pacheco acknowledges this timeline is ambitious.

The Open Skies agreement, signed on 2 August, is the 136th such treaty for the U.S. Once ratified by the Dominican Congress and approved by the U.S., it will allow airlines from both nations to operate unlimited flights between the two countries and introduce stopover routes to third countries.

Currently, the U.S.-Dominican Republic treaty restricts the number of destinations airlines can serve without special permission. However, U.S. carriers have frequently received such permissions due to the Dominican government’s eagerness to boost tourism.

Arajet, which began operations in September 2022, now serves 16 countries and 23 destinations with a fleet of 10 Boeing 737 Max 8s. The airline, backed by Boston-based Bain Capital, is headquartered in Santo Domingo but will open a new base in Punta Cana on 27 October, launching with 11 routes.

Despite its extensive network across the Americas, the U.S. remains absent from Arajet’s route map. The carrier applied for U.S. route approvals in February 2023, but the application is still pending.

Two Dominican airlines, Skyhigh Dominicana and Red Air, currently fly to the U.S., with Skyhigh offering 50 combined frequencies this month on three routes. The market is dominated by larger U.S. airlines, with JetBlue leading with a 43.4% share, followed by American, Delta, United, Frontier, Spirit, and Southwest.

Pacheco highlighted three target markets for Arajet in the U.S.: Dominicans visiting friends and family, and leisure travellers. The airline plans to begin its first GDS distribution in November, though details remain undisclosed.

To compete with established U.S. airlines, Arajet will focus on low prices, reliable operations, and superior passenger comfort. The airline’s standard seats have 28 inches of legroom, similar to Frontier and Spirit, while extra-legroom seats offer 32 inches. All seats feature reclining seatbacks and in-seat power, which Spirit and Frontier do not provide.

“We combine the power of low fares with a product that is on time and comfortable,” Pacheco said.