India on the Move - 2020

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April 19, 2007

JetLite to takeoff with a designer look

Jet Lite is the new name for Air Sahara, that was recently acquired by Jet Airways. As you know, the Jet-Sahara deal will be remembered for 16 months of dispute and court-room drama. All that is over and JetLite is being positioned as a budget airline that falls between the low-cost carriers like Air Deccan and a full service airline like Jet Airways itself. At the same time, the competition in the skies has pushed Jet to go in for its first mutli-million dollar rebranding exercise since 1993. As both Kingfisher and Jet are readying for competition on international routes, the Jet fleet has been given a dose of luxury.

For 14 years, Jet Airways' Naresh Goyal only believed in premium airlines. Now it's set to transform the newly acquired Air Sahara into a budget airline, as Jetlite. In 3-6 months, the company will rationalise routes and drop prices by 25% for the same. Chairman, Jet Airways, Naresh Goyal told CNBC-TV18, "Lite means it will be light on your pocket and will bring light to the aviation industry."

Jet will integrate operations but JetLite will remain a 100% subsidiary. However analysts point out with this positioning, JetLite might cannibalise Jet Airways' economy class. By buying Air Sahara, Jet's marketshare has jumped from 24% to 32%, consolidating its market position. But the timing is apt for Jet to go for re-branding, as competitive pressures mount from low-cost carriers and players like the soon-to-be merged Air India and Indian Airlines (now called Indian).

Designed by Landor and Associates of London, ribbons of yellow have been added to the Jet brand now. Even the crew uniforms have gone in for a makeover. This rebranding promotion is on for a month on press, radio and internet. M&C Saatchi that bagged the Rs 50 crore Jet account in January is expected to release Jet's first television commercial in the next few months. And going forward, marketing spends will hot up, as Jet flies to big-ticket international destinations. Currently, it runs a daily service to Bangkok. The fleet of 20 new aircarft for international routes are also getting a facelift.

He's not a brand ambassador, but the celebrity board member, Shahrukh Khan displayed the new luxury offerings like private suites and in-flight entertainment for the international flights. Some of them will gradually find their way to the domestic fleet. Vice President, Marketing, Jet Airways, Gaurang Shetty says, "We have been serving them for 14 years, there are customers overseas that have experienced us, but it's the difference vis-a-vis the competition that we wanted to enlarge."

More luxury-driven competition is in store for Jet, as the Vijay Mallya-promoted Kingfisher Airlines is hoping to start its international service by January 2008.


Source : Money control

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