After low-cost merger, Jet to hold 2 licences

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Debabrata Das: Mumbai, Jan 16 2012, 01:16 IST

Jet Airways, which acquired and rebranded Air Sahara as JetLite, is merging it with its own low-cost brand Jet Konnect, following which the low-cost unit will fly under the JetLite licence, while the full-service carrier will continue to use the Jet Airways licence, a company official told FE.

The full-service and low-cost airlines will function as two separate companies with their own management teams. At present, Jet Konnect accounts for 75% of Jet Airways’ domestic operations, which will rise as the company deploys more planes for the low-cost airline, the official added.

“We will make use of the two licences and operate as two separate airlines under one group company,” said a senior Jet Airways executive. “A decision on the branding of the low-cost arm is yet to be taken, but we do see more synergies with the Jet Konnect brand.”

The airline had announced in July that it would merge the two as it did not make sense to operate two low-cost brands.

A Jet Airways spokesperson said the airline will renew the JetLite licence which will expire at the end of this year.

JetLite was formed after Jet Airways purchased the airline business of the Sahara Group in 2007. It has a fleet of 18 Boeing 737 planes. Airline sources said that this could be expanded as part of the merger plan.

“The chairman has stated that the focus should be on low-cost,” said the Jet Airways executive earlier quoted. “After the brand merger, more aircraft will be deployed for the low-cost operations. Jet

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