Jet-KF alliance not a marriage of convenience: Naresh Goyal

Jet Airways Chairman Naresh Goyal said that consolidation (in the aviation sector) is inevitable, reports CNBC-TV18, adding that market share was not the answer to profitability. According to Goyal, rationalisation of routes, capacity and costs are essential for survival.
His company's alliance with Kingfisher Airlines is not marriage of convenience, he clarified. Rationalisation will improve their bottomlines, Goyal said.
Vijay Mallya, Chairman, Kingfisher Airlines, said the benefits of the alliance would be seen in the next quarter.
As a cost-cutting measure, Kingfisher and Jet had on Monday entered into a code sharing alliance.
The move was followed by Jet dismissing 600 employees in one of the largest layoffs in the Indian aviation sector and there was speculation that Kingfisher may follow suit.
15/10/08 CNBC-TV18/Moneycontrol.com

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Categories: Jet Airways Oct 2008, Kingfisher Oct 2008