Don't Call It A Merger: India's Jet Airways, Kingfisher Airlines Form 'Alliance'

Citing the sharp downturn in the global economy, two Indian airlines announced Monday they will join forces in order to survive. Jet Airways and Kingfisher Airlines announced an alliance that both carriers hope will "significantly rationalize and reduce costs and provide improved standards of service and a wider choice of air travel options to consumers with immediate effect."
The alliance will allow Jet and Kingfisher to codeshare on both domestic and international flights, subject to approval by Indian aviation authorities. Both carriers will also combine networks where allowed, and manage their fueling needs as a single entity. The airlines also plan to combine crew training practices, and will cross-train flight crews on each other's planes.
Those steps sound a lot like a formal merger... but despite the alliance's scope, both airlines stress this is not a full-fledged joining of the two carriers. At least, not yet.
Both airlines will maintain their separate legal and brand entities, though representatives add both Jet and Kingfisher will examine co-branding opportunities down the line. The airlines have also formed a "core committee of senior management personnel" to discuss further actions down the line.
"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," a joint release states. "However, there will not be any mutual equity investments between the two companies."
"All over the world Airlines have formed alliances in order to become more efficient, improve revenues and provide seamless travel opportunities for their customers. India has witnessed tremendous growth in the past which has slowed down considerably," said Naresh Goyal, Chairman of Jet Airways.
13/10/08 Aero-News Network, USA

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Categories: Jet Airways Oct 2008, Kingfisher Oct 2008, New Oct 2008