Kingfisher, Jet forge alliance to cut losses | More

MEGA TIE-UP: The two airlines will benefit from the forged tie-up in the highly competetive market

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Mumbai: India's biggest private carriers Jet Airways and Kingfisher Airlines announced late on Monday night that they have forged an alliance.

Jet Airways chairman Naresh Goyal and his Kingfisher Airlines counterpart Vijay Mallya issued a joint press statement in Mumbai after a marathon meeting.

The alliance is of wide-ranging proportions that will help both carriers reduce costs, synergise operations and improve services, say the allies.

The alliance will offer "a wider choice of air travel options to consumers with immediate effect. The two airlines will be able to rationalize their operations and derive the maximum synergies and thereby offer the best possible fares for the benefit of the consumers," said Goyal and Mallaya in the joint press statement.

There will, however, not be any mutual equity investments between the two companies, the statement added.

"The alliance will also enable a stabilization of the Indian aviation industry in the larger public interest, especially for the benefit of the customer during the current downturn of the world economies," the statement maintained.

In the current environment of high costs and declining growth this alliance has potential for substantial savings resulting in a benefit to the consumer.

The scope of the alliance will include:

• Code-shares on both domestic and international flights subject to DGCA approval

• Interline/special prorate agreements to leverage the joint network deploying 189 aircraft and offering 927 domestic and 82 international flights daily

• Joint fuel management to reduce fuel expenses

• Common ground handling of the highest quality

• Cross selling of flight inventories using the common global distribution system platform

• Joint network rationalization and synergies

• Cross utilization of crew on similar aircraft types and commonality of training as also of the technical resources, subject to DGCA approval

• Reciprocity in Jet Privilege and King Club frequent flier programmes