Jet and Kingfisher forge alliance
Jet Airways and Kingfisher Airlines have confirmed plans to form an alliance to help fight off the impact of the global economic downturn.
However, there will not be any mutual equity investments between the two Indian companies.
The airlines say the move will allow them to streamline their operations, deriving “maximum synergies”.
They also claims an alliance is in the national interest, incorporating the international best practice to strengthen the Indian aviation industry.
The two will retain their separate legal and brand entities, but will explore co-branding opportunities.
They have formed a core committee of senior management personnel who will drive initiatives forward with immediate effect under the overall direction of their respective chairmen, Naresh Goyal and Vijay Mallya.
The scope of the alliance will include:
– code-sharing on both domestic and international flights subject to DGCA approval.
– interlining/special prorate agreements to leverage the joint network: deploying 189 aircraft 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 GDS platform
– joint network rationalisation 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 flyer programmes.
“All over the world, airlines have formed alliances in order to become more efficient, improve revenues and provide seamless travel opportunities for their customers,” said Goyal.
“India has witnessed tremendous growth in the past which has slowed down considerably. In this environment the Jet Airways – Kingfisher alliance represents a completely new industrial model for aviation in India which would be based on an unprecedented depth of cooperation between the two companies. There will be huge cost savings and revenue enhancement opportunities arising from this alliance.â€
Mallya added: “This is a quantum leap forward in the evolution of Indian aviation which will benefit customers by delivering the most comprehensive integration in the industry. Both Jet and Kingfisher fully realise that better understanding of supply and demand in this capital and labour intensive industry is the key to profitability and enhancement of shareholder value. “
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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