Country’s largest private sector air carrier Jet Airways on Monday said it will complete the merger of its two low-cost models — JetLite and Jet Konnect — under a single brand by May.
“We are contemplating brand merger of JetLite and Jet Konnect. JetLite will cease to exist by April-May. We expect capacity addition in low cost models as well,” a Jet Airways official told financial experts in New Delhi.
Currently, the two no-frills brands that Jet operates are JetLite, which it bought from Sahara group, and Jet Konnect.
The official further said capacity addition would not be a concern for next 12-15 months.
“Out of our 100 aircraft fleet, 40 is owned and 60 is on lease. FY ’13 will see revenues remaining flat and may see 5 per cent capacity addition,” he said.
Also, the company said it expects to sell and lease off 77 aircrafts in Q4. “This will help pay off working capital loans and debt pay off. We have not taken any extension of lease expiry“.
The company, which posted a loss of Rs. 101 crore in the quarter ending December, also said that higher fuel prices and depreciating rupee would continue to be a cause of concern.
“Higher fuel prices and depreciation of rupee have impacted company’s operations. ATF prices and rupee depreciation continue to be a cause of concern. These are some uncontrollable event in the short run,” it said.