In a move to restructure domestic operations and reduce losses, Jet Airways – the second largest airline in terms of number of passengers carried – on Monday said it is looking at creating a single brand by the end of this year, subject to regulatory approvals.
As part of the strategy of creating one master brand, Naresh Goyal, chairman of Jet Airways, told reporters that there is a lot of confusion within the consumers with brands like Jet Airways, JetKonnect and JetLite.
The airline said that the entire operations of Jet Airways (including JetLite) will operate under Jet Airways brand by the end of this year, hinting that the airline will discontinue the LCC operations, subject to regulatory approvals.
JetLite currently operates a fleet of 11 aircraft under the JetKonnect brand deployed across Jet Airways's domestic network which includes more than 50 cities. These aircraft will be progressively repainted in Jet Airways livery over the coming months.
"80% of passengers fly LCCs. Nothing will change. We will continue to operate with same aircraft and on same routes. However, we will focus on providing value for money. Our economy class fares will be competitive with domestic carriers," Goyal said.
The airline recently said that it is looking at a turnaround in operations by 2017.
It was earlier reported that Jet Airways was looking at selling its LCC arm JetLite. However, Goyal, along with James Hogan, president and CEO, Etihad Airways, said the airline is not looking at any selling any division of its business.
The airline has been in the process of restructuring its domestic operations as it continues to bleed. Cramer Ball, Jet Airways CEO designate, said the airline's performance has been improving on account of joint strategies. Abu Dhabi-based Eithad holds 24% stakes in Jet.
The airline on Monday reported a standalone net loss of Rs 217.65 crore for the quarter to June, down 39% from the year-ago period. Revenue rose 17% to Rs 4,685.64 crore in the reporting period, while total passenger revenue rose 11.1% to Rs 4,262.6 crore.
International operating results improved 86% and is profitable, the airline said. Jet said it reduced the debt by 21.5% during the quarter.