JetLite shelves launch of international services
01 Jul 2008
Mumbai: Jet Airways subsidiary, and its low cost service, JetLite, has announced the shelving of its international plans. The carrier said it will dis-continue 20 of its 131 daily flights within the country as part of its cost-cutting measures.
The measures will also include the grounding of three of its 18-strong fleet of Boeing 737s.
According to JetLite CEO, Rajeev Gupta, the carrier now would not commence services to either West Asian or other foreign destinations. International routes, he said, take at least three months to stabilise and given the heavy losses that the carrier was already saddled with, it was not advisable to take on additional burdens.
Reports suggest that JetLite has suffered a loss of about Rs42 crore for the month of June alone.
Before skyrocketing prices of aviation fuel changed scenarios for most carriers, JetLite had plans to fly to West Asia and had sought rights to fly to destinations such as Doha, Qatar, Muscat, Abu Dhabi and Sharjah. The intention was to compete with state-owned Air India Express.
These services would have been launched in August as per original plans.
The West Asian region already has low cost carriers like Air Arabia and Al Jazeera, apart from Air India Express, whose presence will make it even more difficult for new entrants to break-even.