Jet, Kingfisher tie-up plan hits air pocket

It could be curtains for the much-hyped, one-of-its-kind alliance in the Indian aviation sector. Two years after Jet Airways and Kingfisher Airlines announced a strategic alliance to reduce costs and enhance efficiency, the tie-up is likely to be a perpetual non-starter, with Jet officials remaining non-committal. The alliance, by which both airlines had anticipated a total savings of Rs 800 crore, had even come under the competition regulator's scanner for alleged cartelisation.
The scope of the alliance, announced in 2008, included code-sharing on both domestic and international flights subject to the approval of the Directorate General of Civil Aviation. The announcement came at a time when the aviation industry was going through a rough patch and airlines in India made collective losses of Rs 10,000 crore owing to the global meltdown.
However, with the industry now witnessing a gradual revival, both airline companies are taking a hard look at the actual gains such a partnership could bring. Moreover, the probe by the Competition Commission of India (CCI)) into the alliance has been another dampener.
30/08/10 Shaheen Mansuri/msn news

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Categories: Jet Airways Aug 2010, Kingfisher Aug 2010