| Jet Airways with a 25.3% market share has made a | | | | not like to transfer more assets to the disputed |
| surprise move of launching an additional low cost | | | | company. Due to economic slowdown, LCC stands at |
| carrier brand ‘Jet Airways Konnect’ to | | | | an advantage, and as such Jet may replace mini |
| augment its existing LCC ‘JetLite’ bought | | | | metro routes with LCC and again replace them with |
| from Sahara Airlines. The move has raised questions | | | | full service carriers at a later stage. |
| about the need for such a move and that too in | | | | This may help Jet in arresting the dip in load factors |
| down times. | | | | and cater to price sensitive sectors, without any |
| As the fine print suggests that there the only | | | | extra involvement of staff or legal hassles. |
| difference between Konnect and JetLite shall be that | | | | Jet may also use the new aircraft to deploy on |
| in the former, one will have to buy meals on-board. | | | | metro routes also during non-peak hours and even on |
| The fare structure, routes and services would also | | | | international routes. The move could also be seen |
| be quite similar. | | | | as a precursor to imminent consolidation to LCC |
| There has been no exact reason given for launch of | | | | market in India. |
| Konnect but it may well turn out to be a smart | | | | However, with increasing competition and reducing |
| move by Jet Airways. | | | | margins, the going will not be that easy. And with too |
| Firstly, there is a legal dispute between Jet and | | | | many brands, there may be a problem of brand |
| Sahara over payment of dues and as such Jet would | | | | integration and optimum capacity utlisation. |