India low cost carrier to be disbanded
Jet Airways will ditch its low cost subsidiary to focus on its full-service airline brand as it looks to stem losses.
India’s second largest airline reported its sixth straight quarter of losses and has not posted an annual profit since 2007.
The JetLite low cost division will be disbanded and its 11 aircraft will be integrated into the Jet Airways fleet.
Jet Airways chairman Naresh Goyal said the move is to eliminate brand confusion.
Goyal said all full service flights will continue, but the airline will aim to keep a lid on rising costs and stay competitive with other low cost carriers.
India is one of the fastest growing air markets in the world, but most carriers are operating at a loss due to high costs and fierce competition.
Low-cost pioneer Air Asia recently entered the Indian market and Vistara – a joint venture between Tata and Singapore Airlines – will begin flying later this year.
Cost-cutting measures will include looking at airport and maintenance costs.
The airline also hopes to start 12 new international flights by the year-end.
New destinations will include Abu Dhabi, Dubai, Doha, Singapore, Ho Chi Minh City and Bangkok.
Goyal highlighted Jet Airways’ financial performance which actually improved by 26% this quarter compared to the same period last year.
The carrier hopes to return to profitability by 2017.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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