JetLite, formerly Air Sahara, is now a 100% subsidiary of Jet Airways. The airline has changed hands from a Subrata Sahara Roy to Naresh Goyal. In line with expectations, the airline will be a run as a budget airline in India.
Initially, there were doubts on whether the two Indian airlines will be merged to become a single, seamless operation. Now, it is clear that Jet Airways does not want the losses of Air Sahara on its own books, which is why is kept as a 100% subsidiary, owned of course by Jet Airways. Jet Airways is planning to synergise and rationalise flights in sectors where Sahara and Jet both used to fly. JetLite timings will be most likely aligned with that of Jet Airways for better yields.
JetLite is not branded as a pure low-cost (budget) airline, but what Jet Airways calls a "value carrier". In a way, this not much different from the last days of Air Sahara, when the company went in for low-cost airline fares with sufficient in-flight service. JetLite seems to have taken over from where Sahara has left.
According to Jet Airways chairman Naresh Goyal, JetLite will turn around and become profitable in a year, with the synergistic use of available resources.
Air Sahara had placed orders for 10 Boeings before it was acquired by Jet Airways. Now, on behalf of Jet Airways, JetLite airline will take delivery of all the 10 Boeings. Also, as part of operational integration, JetLite (formerly Air Sahara) frequent flier and Jet Airways frequent flier schemes will be integrated. According to the synergies being worked out, passengers in delayed Jet Airways flights will be accommodated in JetLite flights and vice-versa.
JetLite is also expected to benefit from the integration of engineering support, airport infrastructure, flight dispatch and network utilization.
Interestingly, both Jet Airways and JetLite are the only two private airlines in India with permission to fly overseas. Since JetLite will be flying as a budget airline, it will be India's only private budget airline to fly abroad. The other budget airline flying abroad is Air India Express, the subsidiary of national carrier Air India.
Though Naresh Goyal and Jet Airways both try to sound optimistic about the future of JetLite, the fact remains that whenever full service airlines started off into the low-budget airline business, they have been failures and had to ultimately wind up. Worldwide, KLM and British Airways have had to shut down their low-cost airline subsidiaries when faced with mounting losses. It would be interesting to see how Jet Airways handles the challenge, since Naresh Goyal himself has always pooh-poohed the idea of low-cost airlines in India, pointing to the fact that here costs are the same, but fares are low, leading to losses. JetLite, like other budget airlines, will have an all-economy class.
Captain GR Gopinath who head Air Deccan has gone on record saying that the Jet Airways strategy to wean away budget fliers with JetLite will not work, since it will only cannibalise the Jet Airways passengers. Gopinath also mocks that Goyal, who has earlier made fun of the low-budget airline model has now gone for the budget choice.
With the addition of JetLite, Jet Airways commands a market share roughly around 33% in the Indian airline market. However, Jet Airways runs the risk of losing this dominance if Kingfisher, as rumours say, go for Air Deccan. Jet Airways has a fleet of 62 aircraft with a capacity of over 40,000 seats a day, while Air Sahara has 27 aircraft with 16,500 seats per day. However, about 7 Sahara (JetLite) aircraft are undergoing maintenance now. Jet Airways is planning to add 22 more Boeing aircraft to its fleet in the next one and half years. The company is planning to raise $400 million for the fleet expansion. According to Jet, no funds need to be raised for the Sahara buyout.
Along with the acquisition of JetLite, Jet Airways has also gone for rebranding exercise, changing the uniform and fleet colours. The new Jet Airways look was developed by UK-based Landor & Associates, which has used a range of brighter, fresher colours while retaining many of the previous elements. The brand has been refreshed to include a swirl of colours resembling a typical Indian dupatta. The logo remains the same, but the lines along the aircraft now have gold and yellow ribbons. Jet is also gearing up for its first flights to the US, which start from August 5 this year. Jet Airways application to fly to the US have been pending for a long time, over allegations of terrorist funding and a suit filed by an airline of the same name in US asking for rejecting the Indian Jet's application.
Getting in top shape for international sectors is top priority for Jet Airways, what with Kingfisher snapping at its heels to fly abroad. Jet Airways is in no mood to let go of the lucrative US route which has just opened up for Jet. Jet Airways is also planning to add flights to Dubai, Muscat, Bahrain, and Doha in the Gulf. Currently, only government owned airlines in India are allowed to fly to the Gulf. Jet plans to enter these lucrative sectors as and when they are opened for private sector competition.
Jet Airways has also recently announced its European hub in Brussels. This will help the airline in operating to North America, Africa and the Middle East. Upcoming Jet Airways New York (Newark) flight (Date-Agust 5) and Jet Airways Toronto flight (Date-not fixed) will be via Brussels. Jet plans to use the hub in ten upcoming flights which they plan to fly to North America and Canada. Jet Airways and Brussels Airlines have also signed a codeshare agreement. The airline last week took delivery of its first Extended Range Boeing.
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Initially, there were doubts on whether the two Indian airlines will be merged to become a single, seamless operation. Now, it is clear that Jet Airways does not want the losses of Air Sahara on its own books, which is why is kept as a 100% subsidiary, owned of course by Jet Airways. Jet Airways is planning to synergise and rationalise flights in sectors where Sahara and Jet both used to fly. JetLite timings will be most likely aligned with that of Jet Airways for better yields.
JetLite is not branded as a pure low-cost (budget) airline, but what Jet Airways calls a "value carrier". In a way, this not much different from the last days of Air Sahara, when the company went in for low-cost airline fares with sufficient in-flight service. JetLite seems to have taken over from where Sahara has left.
According to Jet Airways chairman Naresh Goyal, JetLite will turn around and become profitable in a year, with the synergistic use of available resources.
Air Sahara had placed orders for 10 Boeings before it was acquired by Jet Airways. Now, on behalf of Jet Airways, JetLite airline will take delivery of all the 10 Boeings. Also, as part of operational integration, JetLite (formerly Air Sahara) frequent flier and Jet Airways frequent flier schemes will be integrated. According to the synergies being worked out, passengers in delayed Jet Airways flights will be accommodated in JetLite flights and vice-versa.
JetLite is also expected to benefit from the integration of engineering support, airport infrastructure, flight dispatch and network utilization.
Interestingly, both Jet Airways and JetLite are the only two private airlines in India with permission to fly overseas. Since JetLite will be flying as a budget airline, it will be India's only private budget airline to fly abroad. The other budget airline flying abroad is Air India Express, the subsidiary of national carrier Air India.
Though Naresh Goyal and Jet Airways both try to sound optimistic about the future of JetLite, the fact remains that whenever full service airlines started off into the low-budget airline business, they have been failures and had to ultimately wind up. Worldwide, KLM and British Airways have had to shut down their low-cost airline subsidiaries when faced with mounting losses. It would be interesting to see how Jet Airways handles the challenge, since Naresh Goyal himself has always pooh-poohed the idea of low-cost airlines in India, pointing to the fact that here costs are the same, but fares are low, leading to losses. JetLite, like other budget airlines, will have an all-economy class.
Captain GR Gopinath who head Air Deccan has gone on record saying that the Jet Airways strategy to wean away budget fliers with JetLite will not work, since it will only cannibalise the Jet Airways passengers. Gopinath also mocks that Goyal, who has earlier made fun of the low-budget airline model has now gone for the budget choice.
With the addition of JetLite, Jet Airways commands a market share roughly around 33% in the Indian airline market. However, Jet Airways runs the risk of losing this dominance if Kingfisher, as rumours say, go for Air Deccan. Jet Airways has a fleet of 62 aircraft with a capacity of over 40,000 seats a day, while Air Sahara has 27 aircraft with 16,500 seats per day. However, about 7 Sahara (JetLite) aircraft are undergoing maintenance now. Jet Airways is planning to add 22 more Boeing aircraft to its fleet in the next one and half years. The company is planning to raise $400 million for the fleet expansion. According to Jet, no funds need to be raised for the Sahara buyout.
Along with the acquisition of JetLite, Jet Airways has also gone for rebranding exercise, changing the uniform and fleet colours. The new Jet Airways look was developed by UK-based Landor & Associates, which has used a range of brighter, fresher colours while retaining many of the previous elements. The brand has been refreshed to include a swirl of colours resembling a typical Indian dupatta. The logo remains the same, but the lines along the aircraft now have gold and yellow ribbons. Jet is also gearing up for its first flights to the US, which start from August 5 this year. Jet Airways application to fly to the US have been pending for a long time, over allegations of terrorist funding and a suit filed by an airline of the same name in US asking for rejecting the Indian Jet's application.
Getting in top shape for international sectors is top priority for Jet Airways, what with Kingfisher snapping at its heels to fly abroad. Jet Airways is in no mood to let go of the lucrative US route which has just opened up for Jet. Jet Airways is also planning to add flights to Dubai, Muscat, Bahrain, and Doha in the Gulf. Currently, only government owned airlines in India are allowed to fly to the Gulf. Jet plans to enter these lucrative sectors as and when they are opened for private sector competition.
Jet Airways has also recently announced its European hub in Brussels. This will help the airline in operating to North America, Africa and the Middle East. Upcoming Jet Airways New York (Newark) flight (Date-Agust 5) and Jet Airways Toronto flight (Date-not fixed) will be via Brussels. Jet plans to use the hub in ten upcoming flights which they plan to fly to North America and Canada. Jet Airways and Brussels Airlines have also signed a codeshare agreement. The airline last week took delivery of its first Extended Range Boeing.
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