Kingfisher-Jet alliance inevitable for survival: Gopinath

Bangalore: The alliance between India’s leading private carriers Kingfisher Airlines and Jet Airways was “inevitable” for their survival and mutual growth, said Captain G.R. Gopinath, vice-chairman of Kingfisher and pioneer of budget airlines in the sub-continent.”I think it is inevitable as it is a matter of survival in these times when airlines the world over are going through their worst phase due to a combination of factors, triggered by soaring fuel prices and followed by global economic slowdown and falling occupancy,” Gopinath told IANS on phone Monday night from the Andamans, where he is holidaying.
Expressing hope that the alliance would enable both the airlines to save huge costs, improve efficiency and facilitate cross-selling, Gopinath said overpricing, rising fuel surcharge and other overheads have resulted in seat occupancy levels declining to about 50 percent in all domestic carriers, leading to heavy operational losses.
“If occupancy levels have fallen to 50 percent in the recent past, it implies the other 50 percent of the people (read customers) cannot afford to fly anymore. Overpricing and increasing fuel surcharge have made all airlines, including Spice, GoAir, IndiGo to fly their aircraft with half the passenger load factor. No airline can sustain or survive at this rate,” Gopinath lamented.
14/10/08 IANS/Thaindian.com, Thailand

To Read the News in full at Source, Click the Headline

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