January 27, 2008
Then: Delays, poor service and inexperienced staff sometimes make flying on JetLite, the low-cost arm of Jet Airways, a harrowing experience. Gary Kingshott, JetLite's Australian Chief Executive Officer, dismisses such stories as "isolated cases". But the integration of Air Sahara (as JetLite was called before its takeover) into the Jet Airways fold is not as smooth as the company would have liked. The airline came saddled with huge costs, largely due to high aircraft lease rentals and a fleet of expensive-to-operate Canadair jets. Kingshott admits that, in order to succeed, JetLite will need to cut costs.
"Currently, the Indian market is divided almost equally between full-service and lowcost carriers. I believe that in five years, the number will be 75-80 per cent in favour of low-cost carriers." Then, JetLite may start international flights, much like its full-service parent. And Jet Airways actually posted a profit of Rs 59 crore for the first half of the year ended September 2007.
Investors seem to think that the two airlines can still make a match of it. After touching an all-time low of Rs 533 in March 2007, the Jet Airways scrip has ridden the bull market to trade at around Rs 1,000 now.
Now: JetLite handled 470,000 passengers in May, which helped the group set a record for the maximum number of passengers - two million - flown by any Indian airline in a month.
Published on: Jul 07, 2011, 11:38 AM IST
Posted by: Navneeta N, Jul 07, 2011, 11:38 AM IST