Tuesday, December 16, 2008

KF-Jet Air operating alliance hasn't yet really taken off

Soaring ATF prices and increasing losses had brought Jet Airways and Kingfisher to forge an alliance in October.
Then, both airlines had said they would examine ways to cut costs by rationalising routes, code sharing, joint fuel management and common ground handling. But sources say two months down the line very little has changed on the ground.
In fact instead of working on the alliance, both airlines seem to be busy charting out their own growth plans.
Kingfisher Airlines is ready to fly new international destinations like London, Hong Kong and Singapore. Kingfisher currently operates daily flights between Bangalore and London, its only foreign route. Kingfisher has received approvals to operate Mumbai-London, Kolkata-Dhaka, Mumbai-Hong Kong, Mumbai-Singapore among other routes.
Jet already flies on these routes and experts say this duplication of flights defeats the purpose of the airlines coming together.
Also when contacted, Kingfisher, a senior member said that while the alliance details are still being worked out, it is surprising to see that that no concrete plan has been charted out yet. Jet and Kingfisher have hinted joint purchase of jet fuel, though they have not formally approached an oil marketing company.
Some aviation experts say that it was a hurriedly concluded alliance agreement where both Kingfisher and Jet were not quite sure about the areas and nature of the cooperation.
15/12/08 CNBC-TV18/Monecontrol.com
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