Jet Airways to scrap low-cost carrier due to losses

Jet Airways to scrap low-cost carrier due to losses

Desperate for a financial turnaround after recording consecutive losses, Jet Airways on Monday unveiled plans to do away with its low-cost brand, JetLite and focus on its full-service operations.

The airline will now streamline its domestic operation by creating a uniform master brand — Jet Airways. The fleet of 11 JetLite aircraft deployed under the JetKonnect brand will be progressively repainted in the Jet Airways livery over the coming months, Naresh Goyal, the airline’s chairman,  told mediapersons in the financial capital of the country.

Goyal said the objective was to remove confusion and not to sell the low-cost brand. All full services will remain, but the airline would strive to keep the costs competitive compared to the low cost carriers which constitute 80 per cent of the current traffic.

Putting up a brave front, Goyal said Jet Airways’  financial performance had actually improved by 26 per cent this quarter compared to the same quarter of the previous financial year.Cost-cutting would mean the airline would take a relook at its airport and maintenance costs without compromising on safety. The airline will adopt a uniform configuration of 12 premier class seats and 156 economy class seats, informed Goyal.

By the end of the year, the airline plans to launch 12 new international flights. The destinations include Abu Dhabi, Dubai, Doha, Singapore, Ho Chi Minh City and Bangkok.

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