Posted by: Helicop Aviation | July 27, 2011

Jet plans to merge JetLite & Konnect

Jet Airways is considering merging JetLite and Konnect into a single low-cost brand. Although no decision has been taken yet, the airline is evaluating options regarding a possible merger.

Eventually, the airline will have a single brand in full service and low-cost category, Jet Airways vice-president (investor relations) K G Vishwanath told analysts at a post-result conference call.

Jet Konnect is a no frills service launched by the airline two years ago. The experiment has been successful because the carrier has been able to use the same planes on a full service model or for a no-frills service depending upon the market conditions.

Since Jet Airways and JetLite (earlier Air Sahara) have separate operating permits, transfer of plans from one to another brand would require regulatory approval. Instead of doing so, the airline decided to create an another low-cost brand in the group. About 75 per cent of its domestic flights are now operated on the Konnect brand, but this figure varies from season to season.

JetLite was launched after the airline acquired Air Sahara. It operates 110 flights daily compared to 170 Konnect flights. The airline management also acknowledges that JetLite profitability in the first quarter came under pressure after other carriers dropped fares.

Source Link:
http://www.business-standard.com/india/news/jet-plans-to-merge-jetlite-konnect/443903/

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