MercoPress. South Atlantic News Agency

New Uruguayan airline to make key announcements next week

SUA CEO Antonio Rama has already tried founding U-Air in the early 2000s, arguably one of the first budget carriers in the region

The company willing to pick up Pluna's legacy as Uruguay's flag carrier will be making a series of announcements next week at Montevideo's Carrasco International Airport, just one year after revealing its plans. SUA (Sociedad Uruguaya de Aviación) is to start operations through a wet lease of airBaltic Airbus A220 aircraft, thus becoming the first airline in Latin America and the Caribbean to choose the Canadian-built narrow-body twin jet.

SUA made its international debut on paper on Jan. 28, 2024, during the International Tourism Fair (FITUR) in Spain. On Jan. 28, 2025, it plans to reveal details about its entry into service, which will also be a pioneer for the large-scale wet-leasing maintenance, and insurance business model in the region. According to commercial aviation industry sources, the fleet will comprise six aircraft to be incorporated over a period of 18 months to reach ten units in three years, thus generating 300 direct jobs and 1,500 indirect jobs in Uruguay.

SUA also seeks to establish the first Airbus A220 maintenance and operations center in the region, in addition to installing a Category D full flight simulator for pilot training within the next five years. The bulk of the project's financing stems from Saudi private capital, it was explained. The Uruguayan Government found the initiative consistent with recent airport developments in Salto, Paysandú, Rivera, and Punta del Este.

The Uruguayan company's CEO and founder is Qatar Airways Boeing 777 Captain Antonio Rama, who as an entrepreneur led the doomed U-Air project, a low-cost airline that sought to become PLUNA's rival between 2003 and 2005 but went bankrupt after it was never allowed to serve Buenos Aires' Aeroparque Jorge Newbery. U-Air's flights to other destinations such as Córdoba, Mendoza, and Rosario with Fokker F-100 aircraft were around 20% full, resulting in a substantial deficit. The Uruguayan Rama has now been living in Doha for years. He has been instrumental in the arrival at Carrasco of direct flights by Iberia, American Airlines, and Air Europa.

PLUNA (Primeras Líneas Uruguayas de Navegación Aérea) ceased operations on July 5, 2012, under then-President José Mujica, who decided to no longer allocate state funds to the company after 76 years in business. Other companies trying to fly under the Uruguayan flag in addition to U-Air were Buquebús Airlines, Amaszonas Uruguay, and Alas Uruguay. All of them were short-lived.

In a wet lease, the lessor provides both aircraft and crew while keeping operational control of all flights. The other alternative would be a dry lease, where the lessee provides its own crew and exercises operational control.

The Airbus A220 model was designed in Canada by Bombardier Aerospace as the CS Series project. It even entered service under that name before the partnership with Airbus Canada Limited, a joint venture between Airbus and the Government of Quebec.