Mumbai: Jet Airways plans to move all its 18 ATR turboprop planes to its low cost subsidiary, JetLite, in a possible first step towards offering only a full service model under its operating permit. The move is also part of a plan to turn around JetLite’s operations.
The airline has two operating permits and offers both full service and no-frills service in the domestic market. Jet acquired Air Sahara and renamed it JetLite in 2007. Jet Airways did not respond to an email query on the topic.
A source said the airline would first have to get approval from lessors for the transfer of aircraft from one fleet to another and then re-register the aircraft under JetLite’s operating permit.
Jet Airways has invested Rs 3,400 crore in JetLite, Rs 1,645 crore in equity and Rs 1,801 crore as an interest-free loan. However, JetLite continues to incur losses, with a negative net worth.
As part of its business plan, the airline appointed a valuer to value its equity in JetLite. Jet Airways’ third quarter profit and loss statement shows its exposure in JetLite by way of investment and loans exceeds the valuation by Rs 462 core.
21/05/14 Business Standard
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The airline has two operating permits and offers both full service and no-frills service in the domestic market. Jet acquired Air Sahara and renamed it JetLite in 2007. Jet Airways did not respond to an email query on the topic.
A source said the airline would first have to get approval from lessors for the transfer of aircraft from one fleet to another and then re-register the aircraft under JetLite’s operating permit.
Jet Airways has invested Rs 3,400 crore in JetLite, Rs 1,645 crore in equity and Rs 1,801 crore as an interest-free loan. However, JetLite continues to incur losses, with a negative net worth.
As part of its business plan, the airline appointed a valuer to value its equity in JetLite. Jet Airways’ third quarter profit and loss statement shows its exposure in JetLite by way of investment and loans exceeds the valuation by Rs 462 core.
21/05/14 Business Standard
