Jet and Kingfisher form alliance
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Two of India’s leading airlines, Jet Airways and Kingfisher Airlines, have announced an agreement to form an alliance, as both carriers aim to streamlined their operations and cut costs. The alliance, which will come into immediate effect, will not involve any mutual equity investments between the two companies, but aims to “derive the maximum synergies and thereby offer the best possible fares for the benefit of the consumers”, according to a joint statement.
The Scope of the alliance will include the following areas:
* Codesharing on domestic and international flights;
* Agreements to leverage the joint network deploying all aircraft and routes;
* Joint fuel management to reduce fuel expenses;
* Common ground handling;
* Cross selling of flight inventories using a common GDS platform;
* Joint network rationalization and synergies;
* Joint use of crew, training and technical resources, subject to DGCA approval;
* Linking of FFPs.
Indian airlines have been badly affected by the recent economic turbulence, with the Federation of Indian Airlines (FDA), of which both Jet and Kingfisher are members, recently requesting a US$1 billion bail-out from the Indian government. This alliance is hoped to stabilise the Indian aviation industry and secure the future of these two fast-expanding airlines amid troubled times.
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