Friday, July 3, 2009

Jet Airways-Kingfisher pact finally takes off


After an eight-month delay, the alliance between the country’s two largest private carriers, Jet Airways and Kingfisher Airlines, finally took off on July 1. “To start with, both the airlines have started sharing infrastructure at the domestic airports that include Delhi and Mumbai,” a senior Kingfisher Airlines said. Apart from infrastructure sharing at airports, the code sharing between the two airlines will start this month. “The infrastructure and code sharing will reduce Kingfisher’s operational costs by 20-30%,” added the official. According to an official at Jet, code sharing on domestic and international flights will start soon, apart from joint fuel management and network rationalisation. Last October, Vijay Mallya and Naresh Goyal signed an agreement to significantly rationalise capacity and reduce costs at a time when prices of jetfuel had hit record highs. Landing and parking charges are high in India. Besides, jetfuel prices have moved upwards in the last two months.

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