The Newest Dominican Airline

It’s not just big global airlines developing tourism, cargo, and logistics in the Dominican Republic. There’s a new local player that’s rapidly expanding routes in Latin America and aims to enter the U.S. market to serve Puerto Rico, New York, and Miami.

In the making for 10 years, low-cost carrier Arajet began operations in September. The Santo Domingo-based airline has already flown more than 180,000 passengers to 17 destinations in Central and South America, Mexico, and the Caribbean, says founder and CEO Victor M. Pacheco Mendez, formerly with charter operator Dominican Wings.

Arajet has funding from heavyweights Bain Capital, Griffin Asset Management, and others for “around $3 billion to guarantee a fleet of more than 40 aircraft in five years,” Pacheco says. It now operates five new, leased Boeing 737 MAX-8 aircraft, equipped with more fuel-efficient and quieter CFM LEAP-1B engines. Plans call for doubling the fleet to 10 aircraft by the end of this year.

So far, about 60 percent of Arajet passengers are Dominicans at homeland and abroad, with Colombia and Mexico the busiest routes. “Our main goal is to operate 17 destinations in the U.S.,” Pacheco says. “We are waiting for the Dominican Republic and U.S. governments to sign an Open Skies treaty that will provide Arajet with a series of conditions that we need as an ultra-low-fare airline.” With Florida a top spot for Dominicans and for tourists to the Caribbean, it hopes to start up in Miami later this year.

Pacheco says his biggest challenge is managing costs to keep fares low, a practice that requires his team monitor seasonal demand and juggle both point-to-point service and connecting flights. “We are working tirelessly to evolve,” says Pacheco, “and turn the Dominican Republic in the new lowcost, connecting hub in the region.” l