Newstrack

'The Indian market has temporarily matured'

Chetan Kapoor - Mumbai

Maunu von Lueders CEO JetLite

Maunu von Lueders, the recently-appointed CEO of Jet Airways' low-cost subsidiary JetLite, believes that lines between full-service and low-cost carriers are blurring. "While the latter are moving towards the full-service space, especially while catering to the business segment, the full-service carriers are beginning to adopt the low-cost distribution methods," he said at the recent Aviation Outlook India summit in Mumbai.

According to von Lueders, JetLite has been focusing on reliability, quality, technical dispatch and on-time performance ever since its merger with Jet Airways. However, he adds, "Some aspects are beyond our control but it is always our responsibility. We have to be proactive rather than reactive as the airline industry is theoretically process-driven. We have to focus on on-time performance and work on external factors and then implement the process to make things happen. The passengers want to be heard and recognised and do not merely want explanations as they are paying a price."

As the industry faces tremendous challenge with the ever-increasing fuel costs, von Leuders believes that efficient revenue management and pricing philosophy has led to JetLite being rather successful in yields as compared to others. "We have a hybrid model of distribution and the agents have a very strong grip on the business. Also, certain added costs do have benefits. However, it is our good network and schedule with premium slots where no one can beat us."

Referring to Indian aviation, he commented, "India has a great future. Although India is currently going through a stagnant period, it has temporarily matured. It will grow again as the aviation industry copes (with changes) along with the customer who will learn that eventually fares must cover the costs. There is a growing pain, but it is a learning process."