Jet Airways, the country's largest private airline would require Rs 200 crore immediately to revive its 100 per cent subsidiary and value carrier JetLite, which is expected to make profits by October-November this year.
JetLite is the new brand name of Lucknow-based airline Air Sahara after Jet Airways acquired it for Rs 1,450 crore in April this year.
K G Vishwanathan, general manager (finance & investor relations), Jet Airways, said it was in the process of integrating the JetLite operations including sharing the skilled personnel (pilots and engineers), airport-related infrastructure and releasing office space.
He declined to disclose the financial details of JetLite, adding "it would need about Rs 200 crore immediately to revive the operations". At present, 17 aircraft of JetLite are flying out of the total 24.
"Two more aircraft would be operational by this month-end and the remaining five would be flying by October," he said.
Jet Airways Chief Executive Officer Wolfgang Prock-Schauer said JetLite would be profitable by October-November, when actual peak season starts.
"With the integration of JetLite, the total operational cost has come down. Significantly, the headcount of JetLite has come down to 2,100 from 4,100," Vishwanathan said.
He further added JetLite would not be a low-fare airline but might be low-cost carrier when it came to cutting operational costs.
JetLite, which is positioned between low-cost and full-service carrier, is in the process of converting its entire fleet to single class configuration.
"Currently, JetLite is operating two-class configuration including business and economy class. We will shortly convert JetLite fleet into single-class economy configuration," a Jet Airways executive said.
As a part of route rationalisation, the flights of JetLite may not be withdrawn from operations as it owns several infrastructure rights such as overnight parking bays and prime time departure slots.
"The yields of JetLite are slowly increasing with cost of operations going down. The cost of distribution would also come down owing to the integration with Jet Airways. We are renegotiating contracts with vendors such as fuel, aircraft lessors etc," he added.
