Once considered premium, why Jet Air adopts low fare model

Jet Airways , which once prided itself on its full service flights, is now looking to its low fare arm to improve profitability. The company recently merged both its low fare verticals--JetLite and JetKonnect--into a single brand as it tries to take on competition, especially from IndiGo which emerged as the number one carrier in terms of market share for July
IndiGo's rapidly expanding market share must be all the more galling for Jet Airways, considering that its fleet size is four times bigger than that of IndiGo.
How did IndiGo score a brownie over Jet?
Being no-frills in nature, IndiGo does not serve meals on-board and hence after a sector trip, it is quick to turn--around the aircraft for its next movement after tidying it up.
For a full service carrier like Jet or even Air India, the turn around is little delayed as they serve meals and after passengers alight the aircraft, cleaning up takes time. Logically, IndiGo can deploy its aircraft for more hours then its full service counterparts who also operate on same sectors.
Its not that Jet doesn't operate in low cost segment. JetLite and JetKonnect have been doing that since 2008 and 2009.
01/09/12 Shaheen Mansuri/moneycontrol.com

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Categories: Jet Airways Sep 2012