Jet Airways-Jetstar interline positions carriers for growth in India, Southeast Asia and Australasia

A new interline agreement between India's Jet Airways and low-cost carrier Jetstar is a significant development for the two carriers and their respective markets. Jet Airways on a single ticket will be able to sell across Jetstar's network from Singapore, which predominantly includes points in Southeast and East Asia (where Jet Airways' network is thin) as well as Australia and New Zealand, where traffic flows to India may shift in the short/medium-term as Air India looks to commence direct flights and Virgin Australia works with new alliance partner Singapore Airlines.

The agreement further evolves Jetstar's hybrid model as Jet Airways passengers, like those of select oneworld carriers, will receive checked luggage and, on long-haul flights, meals and comfort kits on Jetstar flights as part of their ticket whereas other passengers have to pay separately. While this adds complexity and some are sceptical of LCCs moving away from a stripped-down model, blurring the lines and adding complexity is rational when yields and network enhancements outweigh the additional cost.