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 ₹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 ₹4 billion.
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 (₹20 billion) in cash for the airline.
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.
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.
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.
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.
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.)
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".