2008-10-20 - Jet and KingfisherJet Airways and Kingfisher cooperate

Rationalisierungsdruck in Indien<br /> Jet Airways and Kingfisher Airlines announced an agreement to the formation of an alliance of wide-ranging proportions that will help both carriers to significantly rationalize and reduce costs and provide improved standards of service and a wider choice of air travel options to consumers with immediate effect. The two airlines will be able to rationalize their operations and derive the maximum synergies and thereby offer the best possible fares for the benefit of the consumers.

However, there will not be any mutual equity investments between the two companies.
The downturn in the world economy has severely impacted the world aviation industry. The rapid increases in and the volatility in the crude oil prices and that of aviation turbine fuel and the slowdown in economic activity has resulted in a decline in air travel both on international and domestic segments of the air travel market.
Worldwide the airline industry has sought to tackle the difficult environment through alliances and joint provision of the best possible standards of service and connectivity to the travelling public by achieving cost and operational synergies and providing extensive connectivity and by offering economical fares. Civil aviation is the keystone of infrastructure development and a key priority of the Indian Government for the development of the economy. The proposed alliance between Jet Airways and Kingfisher is in the national interest by incorporating the international best practice to strengthen the Indian aviation industry. In the current environment of high costs and declining growth this alliance has potential for substantial savings resulting in a benefit to the consumer.
Commenting upon this path breaking alliance, Naresh Goyal, Chairman of Jet Airways said: "All over the world Airlines have formed alliances in order to become more efficient, improve revenues and provide seamless travel opportunities for their customers. India has witnessed tremendous growth in the past that has slowed down considerably. In this environment the Jet Airways - Kingfisher alliance represents a completely new industrial model for aviation in India that would be based on an unprecedented depth of cooperation between the two companies. There will be huge cost savings and revenue enhancement opportunities arising from this alliance."

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