Improving operational performance and flying more passengers helped the airline reduce its June quarter loss to Rs 218 crore from Rs 355 crore a year ago, but this is still very high. Jet's turnaround strategy includes doing away with the 'Jet Konnect' airline brand (associated with its low cost offering) and going back to its basics of being a full-service airline. The rating downgrade at this juncture, by pushing up the cost of future debt for the company, will push it to the back foot once again. It doesn't help that competition in the Indian skies is expected to increase significantly with 'Vistara' – the Tata – SIA joint venture likely to take off this year and approvals granted for six new airlines in the country.