Jet merges JetLite with Konnect

As part of a strategic rebranding exercise, Jet Airways will consolidate its low-fare service products under the JetKonnect brand to simplify the group's service proposition and enhance brand recall, the company said.

Effective March 25 the erstwhile JetLite and Jet Airways Konnect services will operate under the JetKonnect brand. This will enable guests to avail themselves of a single in-flight product in the full service (Jet Airways) and low-fare (JetKonnect) categories.

Jet Airways (India) Ltd and JetLite (India) Ltd will continue as distinct business entities operating under their own airline operating permits. JetLite was previously known as Air Sahara, which Jet Airways acquired in 2007.

JetKonnect will be the dedicated low-fare service with a mixed fleet of Boeings and ATR aircraft to operate on metro, tier-II and -III routes.

JetKonnect will offer Premiere services on certain routes where guests may enjoy service identical to that enjoyed by Premiere guests on Jet Airways. This will be further expanded in a phased manner, Jet Airways said.

Some JetKonnect flights will operate under the S2 code, while others will have flight numbers prefixed by the 9W code. Difference in fares between the premier Jet Airways and JetKonnect will also be reflected on the Web site and all visible communication avenues.

Commenting on the rebranding exercise, Mr Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, "Given that our low-fare, all-economy product, Jet Airways Konnect has proved to be a successful model, we thought it best to consolidate our product in the low-fare segment with a single brand - JetKonnect, for enhanced brand recall."

Ticket sale for JetKonnect flights under the 9W code (2000 series) and S2 code (4000 series) will commence from March 20 with travel validity from March 25 onwards. The total number of flights by the Jet Airways group, which currently operates around 600 flights daily with a fleet of 120 aircraft, will remain unchanged.

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Govt summons Mallya, may cancel Kingfisher licence

NEW DELHI, MARCH 19: 

The Kingfisher drama appeared to be entering the end-game phase, with the ground being prepared for suspending the airline's operating licence.

The suspension of the licence will mean Kingfisher will have to stop operating its scheduled flights.

Official sources said that a showcause notice as to why the airline's licence should not be suspended for flouting licence conditions was issued to Kingfisher at the end of January.

Going by the rules, the airline should have replied within 15 days of the notice being sent to it, but it failed to do so.

The airline not sticking to the various recovery plans that it had submitted to the Directorate-General of Civil Aviation (DGCA) and its inability to pay salaries to its employees and maintain its approved schedule are some of the key reasons for considering suspending the airline's operating licence, sources close to the developments said.

The airline, however, declined to comment, claiming that no showcause notice has been received, a point contested by the Government.

The airline, which earlier operated with a fleet of more than 60 aircraft, now has only 16 planes flying.

Late last month, the airline had submitted a detailed plan to the DGCA, according to which it was to see a steady increase in the number of aircraft and flights that it operated. This too has not happened.

A clearer picture on the airline's future is likely to emerge in the next few days with the airline's politically well-connected Chairman and Managing Director and Member of Parliament, Mr Vijay Mallya, being summoned by the Director-General of Civil Aviation for urgent talks.

No firm schedule has been fixed for the meeting as yet, although it is expected to take place in the next 24-48 hours.

Interestingly, the DGCA Web site shows Mr Vijay Mallya as the "Accountable Manager" for Kingfisher Airlines.

Sources indicated that the top echelons in the Government, including the Minister of Civil Aviation, have been kept fully abreast of the fast deteriorating situation in the cash-strapped airline.

They also said that the promoters were playing a cat-and-mouse game and waiting to see whether they should shut down the airline or whether the Government would be forced to take this extreme step.

ANOTHER BOARD MEMBER QUITS

Meanwhile, the airline informed the BSE on Monday that Mr Anil Kumar Ganguly had resigned from its Board of Directors and his resignation had been accepted effective March 17. Mr Ganguly became the second Board member after Mr Vijay Amritraj to resign from the board within a week.

The airline claimed that Mr Ganguly had resigned because of indifferent health while Mr Amritraj had quit because of increase in his travel schedule and commitments.

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Jet revisits brands, now JetKonnect takes shape

Jet Airways on Monday said it is consolidating its two low-cost brands - Jet Airways Konnect and JetLite - into a single brand called JetKonnect effective March 25 - something it had been trying to pull off since last year.

"In an attempt to achieve brand consistency, JetKonnect will be the dedicated low-fare service with a mixed fleet of Boeings and ATR aircraft to operate on metro, tier II and III routes," Jet said on Monday.

While JetLite as a brand will cease to exist, its services will be operated under JetKonnect.

However, Jet Airways (India) and JetLite (India) would continue as separate business entities operating under their own airline operating permits, the company said.

The exercise would include dual branding of Jet and JetKonnect logos at all check-in and ticketing counters.

"The rebranding will help further synergise the collective operations," said Sudheer Raghavan, chief commercial officer, Jet Airways.

In the past, Jet has used JetKonnect as a swing inventory to ensure higher utilisation of fleet.

Analysts believe the exercise would go a long way in clearing confusion created by the two low-cost brands earlier.Jet had acquired JetLite from the Sahara Group in 2007, which was then called Air Sahara.

Shares of Jet on Monday closed up 0.6% on the National Stock Exchange at `321.05. With agency inputs

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Kingfisher Airlines may lose flying licence

Ailing Kingfisher Airlines on Monday faced the prospects of its flying licence being cancelled and its boss Vijay Mallya had been asked by the Directorate General of Civil Aviation (DGCA) to present a clear picture of the cash-strapped private carrier.

The DGCA mulled cancellation of Kingfisher's flying permit after the airline on Monday submitted to it the summer flight schedule with 15 to 16 aircraft as against 28 planes submitted last month.

"The airline not only lacks aircraft, they also lack funds for day-to-day operations. They are failing to meet their flight schedule, causing inconvenience to passengers and also they failed to give salaries to their employees for the past four-five months," official sources said.

Sources said Kingfisher might be planning a quite shutdown and Mr. Mallya being an 'accountable' person has been asked to meet the DGCA to present a clear picture.

The whole picture was likely to become clear in few days, the officials said.

The beleaguered airline was served a showcause notice by the DGCA towards the end of February asking why its licence should not be suspended as it had made unannounced cancellations.

The 15-day mandatory notice period has already lapsed and they have failed to give a valid reason for curtailment of their flight schedule, most of their explanations are unsatisfactory and they have not given a definite recovery plan, officials said requesting anonymity, adding the airline was now operating only 15 or 16 aircraft.

Facing severe fund crunch, the airline has decided to curtail its overseas flights operations to avoid further losses and also return of a leased aircraft.

According to sources, the airline has planned to suspend its overseas operations from March 25, except Delhi-London, which it is withdrawing from April 9. Also the airline would return its wide body airbus A330-200 aircraft to a lessor in the United Kingdom.

Struggling to stay afloat, around 60 accounts of Kingfisher Airlines have been frozen by the tax authorities for its failure to pay taxes after levying it from the passengers.

Angry over not being paid for four months, airline pilots reported sick, forcing the airline to curtail its scheduled flights.

Mr. Mallya at a meeting with the pilots last Friday said their grievances would be looked into but did not set a timeframe.

He had also said the airline would come out with a crystal clear roadmap for its future in a few days.

Kingfisher has a total debt of about Rs.7,057 crore and accumulated losses of about Rs.6,000 crore.

Earlier this month, global airlines body IATA suspended Kingfisher for not clearing its dues. This was the second time in just over a month that the airline was suspended on the same count from the IATA Clearing House (ICH) through which airlines and related firms settle accounts for services provided by them to other such companies.

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