Jet and Kingfisher form alliance to battle high costs

Dubai: Jet Airways and Kingfisher Airlines on Wednesday said they have formed an alliance in codesharing, jet fuel management and interline agreements that will help the carriers to significantly reduce costs and provide a high standard of service and a wider choice of air travel options to consumers with immediate effect.

"The two airlines will be able to rationalise their operations and derive the maximum synergies and thereby offer the best possible fares for the benefit of consumers. However, there will not be any mutual equity investments between the two companies," a joint statement said.

The downturn in the world economy has severely impacted the aviation industry. The rapid increases and volatility of crude oil and jet fuel prices and the slowdown in economic activity has resulted in a decline in air travel both on international and domestic routes.

Worldwide the airline industry has sought to tackle the difficult environment through alliances and joint provision of the best possible standards of service and connectivity to the travelling public by achieving cost and operational synergies and providing extensive connectivity and by offering economical fares.

Civil aviation is the keystone of infrastructure development and a key priority of the Indian government for the development of the economy.

The proposed alliance between Jet Airways and Kingfisher is in the national interest by incorporating international best practices to strengthen the Indian aviation industry.