Jet Airways set to phase out Jet Lite, sold and lease back fleet

[JuliusWong 0]

Jet Airways said on Monday that it will phase out its low-cost brand Jet Lite, replacing it entirely with a more popular, low-cost service brand Jet Konnect by May.

“We are contemplating brand merger of Jet Lite and Jet Konnect. Jet Lite will cease to exist by April-May. We expect capacity addition in low-cost models as well,” a Jet Airways executive said in a conference call with financial experts.

The airline operates two low-cost models — Jet Lite, which it bought from Sahara group and Jet Konnect, which was launched in May 2009. The move was in the works for at least two years, said another top executive.

Jet Konnect, with almost 290 flights daily, links seven major metros, with fare priced between Jet Airways and Jet Lite.

“Out of our 100 aircraft fleet, 40 is owned and 60 is on lease. Financial year 2013 will see revenues remaining flat and may see 5 per cent capacity addition,” the executive said, adding that further capacity addition would not be a concern for next 12-15 months.

The company said it expects to sell and lease off 77 aircraft in Q4. “This will help pay off working capital loans and debt pay off. We have not taken any extension of lease expiry”.

Jet Airways, which posted a loss of Rs 101 crore in the December quarter, said that higher fuel prices and depreciating rupee would continue to be a cause of concern. “Higher fuel prices and depreciation of rupee have impacted company’s operations. ATF prices and rupee depreciation continue to be a cause of concern. These are some uncontrollable event in the short run,” it said.

Jet Airways on Friday posted a net loss of Rs 101.22 crore in the December quarter of 2011-12, against a net profit of Rs 118.23 crore in the corresponding period last fiscal.

Source:http://www.indianexpress.com/news/jet-airways-set-to-phase-out-jet-lite/903237/0