Jet Airways has said it plans to increase domestic low-fare capacity to 80 per cent of the total fleet from present 72 per cent and may launch more budget flights for short-haul international routes.

"In order to do this, the airline is considering the possibility of merging its low-fare service brands called Jet Konnect and JetLite. We may also consider more low-fare flights for short-haul international routes. Globally, there is a progressive transfer of capacity from full service to low-fare carriers," Jet Airways Chief Commercial Officer Sudheer Raghavan told reporters on the sidelines of the company's 19th annual general meeting here.

The Naresh Goyal-led firm also plans to aggressively cut down on costs to improve profit margins. "Currently, there is almost a monopoly situation in the global distribution system market, and the two leading players keep raising prices. So, we may explore the possibility of going with new global distribution system players or even adopt Internet-based methods which low-fare carriers have evolved," Raghavan said.

On the financial front, the airline has already converted about Rs 2,500 crore of local currency loans to dollar-denominated debt from last October, which would help it save about Rs 175 crore in interest costs in FY12, Jet Airways Senior Vice President (Finance) M Shivkumar said. "The airline is in the process of converting a Rs 500-crore loan into US dollar denominated debt in the current fiscal and plans to repay about Rs 1,500 crore of debt this year," he said.