After low-cost merger, Jet to hold 2 licences
“But the world is changing; so who knows how the future will pan out,” he said. “Several well-known airlines worldwide have set up subsidiaries and are running low-cost carriers successfully but under separate managements.”
Consultants say a revamp of JetLite is needed very soon and a merger of the low-cost brands would be the way to go. “JetLite at the moment finds it self competing against Jet Konnect. It can’t match fares and costs and it has become unprofitable,” said the consultant quoted above. “A new management and a new mission will perhaps revive it.”
Auditors of Jet Airways, Deloitte Haskins & Sells and Chaturvedi & Shah, had mentioned in November that JetLite’s net worth had been completely eroded. As of the fiscal second quarter, JetLite’s revenue per passenger had dropped by 10% to Rs 3.29 as against Rs 3.67 in the corresponding quarter. The airline needed to fly planes almost completely full to break even as the breakeven seat factor in the fiscal second quarter stood at 99.4%.
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