Replication unlikely

We have heard that American Airlines Group Inc. agreed to buy a stake in JetSmart Airlines, a privately held, low-cost carrier based in Chile. JetSmart is an Indigo operator.  Indigo holds a majority stake in Frontier Group Holdings Inc., the parent of Frontier Airlines; Hungary’s Wizz Air Holdings Plc and Mexico’s Volaris.  Franke is Indigo’s managing partner as well as chairman of Frontier.  A codeshare, or marketing, alliance will join American’s extensive long-haul international network from the U.S. to South America with JetSmart’s short-haul, low-fare routes to 33 destinations mostly in the western half of the continent, allowing passengers to travel seamlessly throughout the Americas. Customers will be able to earn and use miles in American’s AAdvantage loyalty program on JetSmart flights. 
This model will not likely be replicated in the Caribbean. Why? AA already has services to literally all of the Caribbean destinations and loads are good. Additionally, operators in the region are not privately held. AA's strategy will likely be one of direct competition not alliance to grow in the region. What is instructive in the JetSmart investment is that AA is pursuing growth outside the US and ensuring that it keeps Frontier in its sights by this very indirect method. Genius.