Jet Airways and Kingfisher Airlines form an alliance!

Jet Airways and Kingfisher Airlines form an alliance!

Jet Airways and Kingfisher Airlines are the two biggest rivals in the Indian aviation market.

Toughening market conditions have led to the two companies forming an alliance.

Jet Airways and Kingfisher Airlines are forming an alliance and they would now be deploying 189 aircraft owned by both carriers on domestic and international routes.

They would also be now cross selling inventories. This is going to enhance the load factors and utilization of their aircrafts.

Ajay D’Souza, Head, CRISIL Research spoke about the new developments in the Indian aviation market: “The airlines have taken a co-operative route towards profitability though this innovative alliance in order to optimize the use of each others resources aimed at cost reduction and increased asset utilization without any equity sharing. These extraordinary measures have been necessitated by the current economic environment and stressed financial position of the airlines.”