MUMBAI: Air Sahara, the airline acquired by Jet Airways for a consideration of Rs. 1,450 crore, will be re-christened `Jetlite' and will be positioned between a low-fare carrier and a full-service airline.

Addressing the media here on Monday, Naresh Goyal, Chairman, Jet Airways, said his company would take control of Air Sahara in the next few weeks and Jetlite, which will be a 100 per cent subsidiary of Jet Airways, would be profitable in the `first year of operations.'

Mr. Goyal confirmed that for Jet, the deliveries of the first of the 20 wide body aircraft would commence this month end. The Chairman said that as per his earlier promise, Jet would announce a cargo airline before the end of the current year and the setting up of an MRO (maintenance, repair and overhaul) facility.

While the entire acquisition cost will be borne out of Jet's internal accruals, Vic Dungca, Director, Jet Airways, said that for its fleet acquisition programme, the airline was going to raise new capital, "based on what the market can absorb.'' "It is significantly more than $400 million and it could be done in stages or all at once. We will try to have the debt-equity ratio as low as possible.''

Besides the benefits of a stronger platform and a larger operational base for future growth through the acquisition of Air Sahara, Jet will acquire skilled personnel like pilots and engineers, categories which are in short supply. "Jet will get certain facilities in infrastructure, manpower and hangars and our per unit costs will come down as the networks of both airlines will be optimally used.''

Also, importantly, according to Mr. Goyal, Sahara's order for ten Boeing B737NG aircraft, which are scheduled for delivery between June 2009 and August 2011, will augment Jet's fleet strength. "However, we will be negotiating with Boeing for better prices for the new incoming aircraft.''

He indicated that his company would seek lower charges for the CRJ aircraft leased by Air Sahara.

As part of the plans to prepare the airline's major thrust into international markets, the corporate identity and brand mark have been refreshed and contemporised. Also, the wide body aircraft will have new lively and all staff will have newly designed uniforms which were unveiled at the media conference.

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