Jet Airways Plans To Merge Low-Fare Units

Discussion in 'Economy & Infrastructure' started by sathya, Jul 26, 2011.

  1. sathya

    sathya Regular Member

    Aug 23, 2009
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    India’s largest airline by market share, Jet Airways, plans to merge its two low-fare subsidiaries into one full-service yet low-cost brand.

    Jet Airways currently operates JetLite, which it bought from Sahara Air, and Jet Konnect, both as separate businesses.

    “We are still in the process of discussing whether there is a need to merge JetLite and Jet Konnect, but we are very clear that there will be only one brand in the low-fare arena and that is something which will emerge very clearly in the next one or two months,” K.G. Vishwanath, Jet Airways Group vice president for commercial strategy and investor relations, said on Monday.

    Vishwanath said the airline plans to sell and lease back three or four Boeing aircraft during the third quarter to raise funds.

    Raj Shivakumar, VP for network planning, revenue management and distribution, said in the second quarter, 75% of domestic revenue came from JetLite and the remaining 25% from Jet Konnect.

    On Friday, Jet Airways reported a 1.23 billion rupees ($27.2 million) loss primarily due to a huge spike in fuel costs, which rose to 57% of the overall expenses of the carrier.

    Vishwanath said the airline is considering operating more flights to the Southeast Asian and Gulf markets, beginning this winter.

    The airline has also decided to hold the fares at the current level, citing “irrational competition.”

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