Jet-Kingfisher pact won’t be in full swing for at least 5 months

Mumbai: The much talked about operating alliance between Jet Airways (India) Ltd and Kingfisher Airlines Ltd will have to wait at least five more months to become a full-fledged one. This is mainly because both carriers will have to respect the ongoing contracts with various suppliers, including fuel, food and ground handling services.
“This was a hurriedly concluded alliance agreement. Both Kingfisher and Jet are not quite sure about the areas and nature of the cooperation. There is no question about crew-sharing as both of them have very few common type of aircraft,” said a retired senior executive of the National Aviation Co. of India Ltd, who is currently working as a consultant to some aviation projects. He asked not to be named.
“Of course, there could be some savings by joining hands. But there will be very marginal benefits for Jet and Kingfisher in terms of joint fuel purchase since they are buying from state-owned oil marketing companies. One will have to wait for the details of the alliance structure,” he added.
Executives of Jet Airways and Kingfisher Airlines met last week to prepare the blueprint for this operating alliance agreement, that was signed on 13 October. “Three senior executives of each carrier met last week and more members are slated to meet by mid-December,” said a senior Jet Airways executive on condition of anonymity. “Sharing of ground handling services such as sharing common buses that are used on the tarmac would be the first among few things to start with. Later on, Jet and Kingfisher will start approaching oil marketing companies for joint purchase of jet fuel.”
A senior Kingfisher Airlines executive, who did not want to be named, confirmed the development, but did not disclose the details of the high-level joint committee that is working on this alliance.
20/11/08 P.R. Sanjai/Livemint

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Categories: Jet Airways Nov 2008, Kingfisher Nov 2008