Jet flies on Konnect to gain market share

New Delhi: The gamble by Jet Airways (India) Ltd to convert two-thirds of its dual-class fleet into an all-economy configuration under the Jet Konnect brand has finally paid dividends.
According to passenger traffic numbers released by the Directorate General of Civil Aviation (DGCA) for October, Jet Airways has increased its market share to 19.8% and together with JetLite commands at least 27% of the domestic market.
“The rebound of Jet is because of Konnect, given that more...aircraft have been converted to all-economy. This has arrested Jet’s fortunes,” said Kapil Kaul, India chief executive for the Centre For Asia Pacific Aviation, or Capa. Kaul, however, pointed out that the benefits of having a low-cost service on its balance sheet will depend on the amount of cost-cutting Jet can achieve to match other low-cost carriers (LCCs).
In May, Jet Airways, with a domestic market share of just 15.7%, had opted for an all-economy configuration on a majority of its flights. Of the 385 daily Jet flights today, including international services, at least 185 are dedicated Konnect flights. Konnect only flies domestic routes.
DGCA passenger traffic figures released on Thursday also show a year-on-year growth of 26.51% in passenger traffic for October.
Unlike 2008, when traffic slumped, a comparison with October 2007 shows airlines carried 3.96 million passengers this time versus 3.63 million then, signalling a revival.
12/11/09 Tarun Shukla/Live Mint

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Categories: Jet Airways Nov 2009