The Ministry of Commerce, Industry, and Tourism recognized Ultra Air as the first mega-investment project in the aviation sector in the country, a distinction that makes the airline the first company in the country to receive the mega-investment qualification.
The airline, which expects to start operations in the next few weeks, decided to apply the mega-investment regime, which grants tax incentives to companies that create a certain number of jobs and make investments above certain amounts.
Thus, as the airline has planned investments of US$30 million in the next five years and the creation of some 22,000 direct, indirect, and induced jobs, it will enjoy incentives such as keeping an income tax rate of 27% as well as accelerated depreciation of fixed assets for a minimum period of 2 years, regardless of the useful life of the asset.
In this regard, María Ximena Lombana, Minister of Commerce, Industry and Tourism, highlighted that “foreign investment is very important because it generates employment, complements current income and is a source of new expertise. Ultra Air’s specific investment, that is being endorsed by the government with the qualification of Mega-investment, will also connect Colombia with more air route options”.
William Shaw, CEO of Ultra Air, commented: “Undoubtedly the Megainversión decree was one of the main reasons why we decided to participate in this project to bring a new alternative for travelers, with fares 20% below the market, which will help to further boost the Colombian air market”.
Ultra Air plans to start operations in the next few weeks after completing the certification process with the Civil Aeronautics, which is in stage 4 of 5. During its first year, it expects to mobilize some 2.7 million passengers.
