Jet set for 'Konnect' with Gulf

Mumbai: In May 2009, Jet Airways launched Jet Konnect, a no-frills brand, to take on IndiGo and Spicejet which were slowly chipping away its market share. Jet Airways Chairman Naresh Goyal’s gamble clicked and today Konnect accounts for 60 per cent of the airline’s domestic capacity. Along with JetLite, it’s roughly twice the number of low-fare seats of Indigo and SpiceJet combined.
That’s an irony considering that Goyal had dismissed the low-cost carrier model as untenable just three years ago. On the contrary, Jet is now set to take a big leap forward on its no-frills strategy. The airline is planning to introduce no-frills service flights in the price sensitive markets in the Gulf region. This will mark another break in tradition, as till now, the airline has offered only full service products on its international routes that account for about 65 per cent of its total revenue.
The airline flies to 24 international routes, including 10 cities in the
Gulf which account for nearly 40 per cent of all outbound traffic from India. Jet’s loads on the Gulf sector were 73.9 percent (in the second quarter of this financial year) and 77.9 percent (in the first quarter), which were lower than the loads on the US, UK and South East Asia sectors in the same period.
14/12/11 Aneesh Phadnis/Business Standard

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Categories: Foreign Dec 2011, Jet Airways Dec 2011