New Delhi : Realising that the economic slowdown has put low-cost carriers (LCC) at an advantage over full service ones, Naresh Goyal-owned Jet Airways has decided to expand its budget segment. The airline, which runs Sahara-turned-JetLite as its LCC, is now introducing another all-economy service – Jet Airways Konnect. Jet Konnect will operate 54 flights daily on 19 routes, connecting 38 cities with Jet livery from Friday. Jet Konnect-plus-JetLite will account for 45% of the group’s entire capacity.

LCCs enjoy nearly 40% of domestic market share, and it’s on the rise. The segment is led by IndiGo, followed by SpiceJet, JetLite and Deccan-turned-Kingfisher Red. Kingfisher Red’s individual market share is not available following its merger with Kingfisher. This has emerged as the hotly contested aviation space and the big boys like Goyal and Mallya want to increase their hold on this segment. Jet’s new brand, a no-frills, low-fare venture – where passengers will have to buy meals – will initially be operated with two Boeing 737s and six ATRs. To start with, Konnect will cover sectors like Chennai-Coimbatore, Madurai-Kochi, Mumbai-Ahmedabad/Bhopal/Udaipur and Bangalore-Pune/Mangalore.

 

Jet chief commercial officer Sudheer Raghavan said,” Full service flights on these sectors get only 50% seat factor. A lower fare would help us increase that.” Raghavan said that while there was a lot common in the operational models of JetLite and Konnect, there would be no overlap of routes. “Even if there is any (overlap), we will ensure that the timings are such that there is no confusion.”

 

Admitting that the slowdown had forced the airline to replace its full-service carrier with an all economy-class service on certain routes, Raghavan said, “Recession has played a significant part in this decision. But when there is a demand for a full service, we will re-start it.” Jet has drawn up plans for JetLite too. The budget carrier currently has a fleet of 23 aircraft – 16 Boeing 737s and seven CRJs. From 2009-end, 20 new planes – a mix of CRJs and ATRs – will join the JetLite fleet over the next three years. Some of them will replace old aircraft.