Jet and Kingfisher join forces

13 Oct 2008 by Mark Caswell

Indian airlines
Kingfisher and Jet Airways have announced a “wide ranging” alliance, including
codesharing on domestic and international flights, and common access to frequent
flier programmes.

Naresh Goyal, chairman of Jet Airways said
that the alliance “represents a completely new industrial model for aviation in
and would deliver “huge cost savings and revenue enhancement opportunities” for
the two airlines.

The proposed alliance include codesharing
on domestic and international flights, joint fuel management, common ground
handling, cross selling of flight inventories, joint network rationalisation, cross
utilisation of crew, and joint access to each airline’s frequent flyer

Jet and Kingfisher – which between them
account for around 60 per cent of the domestic Indian aviation market – also said
they would examine co-branding opportunities, and “have formed a core committee
of senior management personnel from both companies who will drive the various
identified initiatives forward”. However the two airlines will maintain their
legal and brand identities, and there will be no mutual equity investment
between the two carriers.

High fuel costs and a faltering global
economy have hit the Indian aviation market hard, with Kingfisher deferring
delivery of 32 Airbus A320 aircraft, and Jet Airways announcing it will discontinue
its Mumbai-Shanghai-San Francisco route from January 13, 2009, as part of the “optimization of its long-haul international network”. This transpacific route was
inaugurated only a few months ago (see online news March 26).

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Report by Mark Caswell

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