Paramount, IndiGo may join Jet-KF club

Mumbai: IndiGo, a New Delhi-based low cost carrier (LCC), and Coimbatore-based business class airline Paramount Airways are in talks to join the Jet Airways-Kingfisher Airlines alliance to cut costs to overcome a downturn.
While IndiGo has had detailed discussions with the liquor baron and promoter of Kingfisher Airlines, Vijay Mallya, Paramount is in talks with executives of Jet Airways for being part of the alliance. A Kingfisher spokesperson denied the meeting, though, sources at Jet Airways confirmed that Paramount is in talks with them for joining the alliance.
"We are looking at having an agreement with Paramount. The south Indian carrier can act as a feeder for Jet Airways and in turn Paramount will get access to the mainland metro traffic which it does not have access to currently," said a Jet Airways executive not wanting to be identified.
In an earlier interaction with Business Standard which took place a day after Jet Airways and Kingfisher Airlines announced the alliance, Paramount Airways' promoter, M Thiagrajan had said that he is watching the situation and then will decide on joining the alliance.
The Jet- Kingfisher alliance has a market share of around 60 per cent and if IndiGo and Paramount join the alliance, the share of the combine, will be close to over 71 per cent.
23/10/08 Manisha Singhal/Business Standard

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Categories: Indigo Airlines Oct 2008, Jet Airways Oct 2008, Kingfisher Oct 2008, Paramount Airways Oct 2008