Jet Airways Konnect launched

Jet Airways has launched Jet Airways Konnect, a low cost all economy class airline as a solution to changing market conditions and an attempt to win back customers in the aftermath of the economic slowdown.

With low cost carriers enjoying success in the Indian domestic market, especially in the corporate travel market that has experienced a rise from 10% to 35% over the last year it is a move by Jet Airways to tap into this market growth through its low cost airline variation in Jet Airways Konnect. The all economy class Jet Airways Konnect begins operations with a fleet of 8 aircraft, 6 ATR 72-500 and 2 Boeing 737-800 series aircraft to connect India’s four main metropolitan cities: Mumbai, Delhi, Bengaluru and Chennai.

Jet Airways set up the all economy class Konnect to combat low load factors and the shift in customer preference in favor of low cost carriers. Jet Airways Konnect will target routes that were operating on a 50% load factor as a full service operation which are projected to receive in excess of a 70% load factor if the service was a low cost budget model. It is an indication for Jet Airways to try their hand at the low cost, budget airline game to win back customers and make these low yield routes more profitable and viable in the future.

Jet Airways Konnect will offer the same award winning Jet Airways service minus the in flight meal. This will be replaced by a buy on board option, thus passengers will still receive top notch Jet Airways service at the lowest cost. Jet Airways is all about passing on the savings to passengers with the Jet Airways Konnect Initiative.

In addition Jet Airways has stated that Jet Airways Konnect is not a new airline rather an extension of the Jet Airways all economy class service to combat low load factors. Once load factors increase Jet Airways has pointed out that Jet Airways Konnect will be integrated back into the main stream Jet Airways full service model; however with the global economy experiencing volatility it may be prudent to say that Jet Airways Konnect may be gracing India’s skies in an all economy layout well into the future.

Jet Airways Konnect will open with 19 routes, 54 daily flights to 38 cities. Jet Airways Konnect and Jet Lite, the low cost, New Delhi based subsidiary of Jet Airways will offer common features on their services but will not overlap offerings. It is all a strategy by Jet Airways to be in harmony with passenger needs while providing greater options at the lowest prices for domestic passengers.

Will this move by Jet Airways through their low cost version of Jet Airways Konnect bring back low passenger loads on low yield sectors and ensure it weathers the turbulent storm? Jet Airways Konnect prices are 10% - 15% cheaper than regular options with Jet Airways full service, will India’s passengers vote with their feet and come back to fly Jet Airways Konnect?

Talking Point:
Considering Jet Airways has been a traditional full service airline will it be able to leverage its costs and provide a successful low cost product for the Indian domestic market?