New Uruguayan Carrier Aims To Enhance Tourism Prospects

The Uruguayan government hopes that the establishment of a new flag-carrier will significantly increase inbound tourism to the small South American nation. The country has lacked a national airline since state-owned PLUNA collapsed in 2012.

Sociedad Uruguaya de Aviación Aereas Lineas (SUA) expects to start services in Q4 2025, using wet-leased Airbus A220-300s from Latvia’s airBaltic under a strategic alliance. These will be the first A220s to see service in Latin America. The agreement will allow SUA Lineas Aereas to benefit from the experience of the Latvian-based company in areas such as fleet management, operational efficiency and staff training.

The signing of the agreement represents a “very important step in Uruguay’s connectivity with the region,” Uruguay’s tourism minister Eduardo Sanguinetti said. He also acknowledged on the Uruguayan government’s official website that there are destinations in South America with which Uruguay is not currently connected, a situation that limits the potential growth of the country’s tourism industry.

The A220-300s being supplied by airBaltic – the Latvian airline expects to supply ‘up to five’ initially – have a range of 6,300km/3,405nm, significantly greater than the 2,870km /1,550nm range of the Bombardier CRJ 900 previously used by PLUNA.

The A220’s greater range effectively brings the whole of South Aerica within range. At present, international flights to and from Uruguay are handled exclusively by foreign carriers, which limits flight availability for Uruguayan residents. A national airline such as privately owned SUA Aereas Lineas may bring new direct connections to destinations in the continent, as well as potentially cutting the cost of tickets through competition.

The A220’s range could allow Montevideo to set itself up as a hub for the ‘Southern Cone’ of South American nations, allowing flights to northeastern Brazil, Argentina’s Patagonia, Peru, and Colombia.

Although generally off the map when it comes to North American and European tourism, Uruguay remains popular as a destination for the citizens of South American nations. The small country, with 3.5 million residents, has a stable economy and strategic location.

According to SUA officials, the airline initially plans to connect cities in Uruguay with a regional network in Argentina, Brazil, Chile and Paraguay.

“Our focus is on presenting a solid business model that addresses the challenges of air connectivity in Latin America,” SUA Lineas Aereas CEO Antonio Rama said when unveiling the pact with airBaltic in late February.

“We have made significant progress with strategic investors and are in the final stages of securing local financing by integrating a regional investor,” he told the official government website.