JetLite's battle for survival
Business

JetLite's battle for survival

JetLite to merge with parent carrier Jet Airways

Jet Airways announced that its board had authorized the amalgamation of the low-cost auxiliary JetLite with the parent airline.

Shares of Jet Airways rose over 3% in trade after the announcement was made

The merger is endeavored to strengthen the airline's resolutions to provide a "consistent, single-brand product and service...leading to a stronger market presence".

Timeline

20 Apr 2007: Sahara makes way for JetLite

Air Sahara which was a part of Sahara Airlines (rebranded in Dec 2000) is JetLite's mother company.

On 12 April 2007, Air Sahara was bought by Jet Airways for Rs.14.50 billion.

Thus, Jet gained a domestic market share of ~32%.

Air Sahara was renamed JetLite and the deal became official on 20 April 2007 after Jet Airways paid an initial sum of Rs.4 billion.

Fact: A failed attempt to takeover Air Sahara

Before the deal in 2007 came through, Jet Airways had attempted their first takeover of Air Sahara on 19 January 2006, offering $500 million (Rs.20 billion) in cash for the airline.

19 Mar 2012: JetLite to be clubbed with JetKonnect

JetLite to be clubbed with JetKonnect

Jet Airways in a structural rebranding decided to merge its budget JetLite with its no-frills brand JetKonnect.

This is done to amalgamate both the arms and make one low-cost carrier brand.

This was an indication of how JetKonnect had a more successful business-model and the one that the company wanted to take forward.

However, JetLite would still operate under its own airline operating permits.

Fact: Jet puts money in a no frills carrier

JetKonnect was launched in May 2009 as the low carrier arm of Jet Airways in order to compete in the no-frills category.

15 Oct 2014: JetLite in soup as pilots quit enmasse

Unhappy with the Jet Airways' administration, pilots of subsidiary JetLite solicited a meeting with controller Directorate-General of Civil Aviation (DGCA)

The meeting was due to the company's policy of six-month notice period ahead of leaving the company. They demanded its waiver.

Over 70 of the 189 JetLite pilots had decided to quit to join Indigo and Vistara - the rival airlines.

2 Dec 2014: JetLites' official discontinuation begins

JetLites' official discontinuation begins

Naresh Goyal-promoted Jet Airways officially began to discontinue JetLite by giving out its "full-service products" on all flights across the domestic sectors.

The discontinuation process will take over a year to get implemented in entirety.

The transit is a part of a board-approved sales strategy announced in August to facilitate the company's return to profitability.

13 Aug 2015: Konnect to phase out to boost JetLite

Jet Airways decided to phase out Konnect in its bid to switch to a single brand and give "service continuity" to its international travellers.

The move was to establish subsidiary JetLite's performance so that customers don't get confused with 2 low-fare carriers.

Moreover, Jet Airways has been planning to transfer all its 18 ATR turboprop planes to JetLite (the plan has been on hold.)

3 Sep 2015: JetLite to merge with parent carrier Jet Airways