JetLite will fly budget: Naresh Goyal

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JetLite will fly budget: Naresh Goyal

Naresh Goyal plans to ramp up budget airline plans. Jet Lite is not another fad diet - it's Jet Airways new budget airline. He is now walking a different talk. Jet, premium for 14 years, will now fly budget.

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Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Air Sahara to be renamed JetLite ALSO READ See latest News about Jet Airways See previous management interviews See what other Experts & Brokerages are saying about Jet Airways Jet Airways BSE | NSE 25/05/12 Are Mutual Funds betting on Jet Airways?

Naresh Goyal plans to ramp up budget airline plans. JetLite is not another fad diet - it's Jet Airways new budget airline.

Naresh Goyal is now walking a different talk. Jet, premium for 14 years, will now fly budget. In 3-6 months, the newly acquired Air Sahara will rationalize routes, drop prices by 25% and fly as JetLite.

Naresh Goyal, Chairman, Jet Airways, says, "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. And since Goyal was in the mood to talk, CNBC-TV18 asked him the Rs 550 crore question - was the deal done at Rs 1450 crores or as Sahara claimed at Rs 2000 crores? He passed it on.

Rajesh Chaturvedi, Financial Consultant, Jet Airways, says, "We are not picking up any debt. We are taking on some current liabilities but they are backed by equivalent cash and guarantees."

That doesn't offer any clarity yet and it's not going to go down well with the street. Analysts believe, even at Rs 1450 crores, it's an expensive buy. Also, there's doubt whether JetLite can survive Sahara's high cost base.

But none of this seemed to worry Naresh Goyal, who launched Jet's new look in the company of hi-profile friends. It seems Jet believes that, according to Counsel for Jet Airways, Harish Salve, "A bad settlement is better than a good verdict."