JetLite draws on synergies to cut costs

Mumbai: JetLite, the erstwhile Air Sahara which was acquired by Jet Airways in April 2007, is all set to clock a turnover of $460 million for the year ended March 2008, according to outgoing CEO Gary Kingshott.
However, it is yet to break even.
“That is linked to when we can get all our planes to fly. We were hoping to do that by January. We need to get two more planes off the ground, and we hope to do so in the next 45 days,” he said.
The Australian CEO, who was deputed from Jet Airways, is towards the end of his two-year contract.
The airline plans to reduce fares by nine per cent over a period of five years to strengthen its position as a value carrier and compete more effectively. This would come by way of achieving lower costs by drawing synergies with Jet Airways.
JetLite has reduced its cost per available seat km (CASKM), a measure of unit cost for airlines, from Rs 4.30 per seat km when Jet acquired Air Sahara to Rs 2.90 per seat km.
25/02/08 Ranju Sarkar/Business Standard

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Categories: JetLite Feb 2008