JET AIRWAYS SCRAPS ITS LOW-COST BRAND TO FOCUS MAIN SERVICE
In its time of peak popularity, Jet Airways has decided to lay down its low-cost brand so that it could completely concentrate on its service operation. This announcement was made on 11th August ’14, stating that the airline is looking forward to reduce its costs after undergoing six losses.
India’s top second airline, in terms of market share, has not faced any annual profit after the year 2007. The airlines estimated that by 2017, the airlines will again be on profiting track on launching more of its international routes.
Naresh Goyal, Chairman to Jet Airways, stated that with their airline’s multiple brands their customers have experienced a lot of confusion. This latest tie-up will help in increasing the airline’s market share. Along with this, the airlines announced that its low-cost carrier JetLite will only take the main’s brand name and will undo its 11 functioning aircrafts. The Jet Company did not further add any information whether these measures in cost reduction lead to any job losses.
The airlines will now be favoring to have economy and business class seats priced at competitive rates. This announcement was made by the Chief Executive of Etihad Airways, James Hogan who holds 24% of Shares in the Jet Airway’s property.
Such cost reducing measures are adopted by the airlines as even though with the aviation industry going in full swing, the airline is experiencing a downfall. The Jet Airways lost 2.18 Billion Rupees in its 3 months service till 30th June ’14 and approximately 3.55 Billion Rupees in the year 2013.