JetLite needs $200m for smooth flight

New Delhi: Following its acquisition of Air Sahara, Jet Airways would require up to $200 million to re-capitalise its new subsidiary brand, JetLite, and turn it around over the next 18-24 months, projects an analyst report from Centre of Asia Pacific Aviation, an airline industry consultancy.
When the restriction on private carriers to fly Gulf routes expires in 2008, Jet is expected to deploy the value brand in the West Asia market to take on Air India Express, the report added. This will also help to reduce capacity in the domestic market and curb cannibalisation of market share between the two in-house brands, Jet and JetLite. “A new network strategy will need to be developed to optimise the operations of Jet Airways and JetLite. Almost 78 of the 88 aircraft in the combined fleet are currently deployed on domestic routes with significant duplication,” states the report.
The challenge for network planners at Jet Airways would be to re-deploy the fleet selectively to achieve higher productivity and revenue potential. Analysts predict that JetLite may follow Air Sahara’s strategy of developing Hyderabad as hub for to service fast growing markets in south India.
10/05/07 Sudipto Dey/Economic Times

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Categories: Jet Lite May 2007