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".
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
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
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.)