News has it that Jet Airways has floated a new entity, Jet Konnect a low cost airline, this inspite of owning Jet-Lite which it bought from the Sahara Group. In times like these it just does not make business sense to float a new entity when the industry is bleeding.
The only logic it fulfills is to insulate Jet-Lite from going down under in case the court delivers a negative judgement in the pending case of non payment of installments due to Sahara and attaching the assets of Jet-Lite, thereby grounding operations to a halt.
Goyal is trying to ensure business continuity by flanking a brand in the same space and model as Jet-Lite. Well Naresh Goyal is smart, but Subroto Roy seems the smarter Alec. Sold out at the right time!
Aeronotix