NEW DELHI: Two of India’s biggest business rivals — Jet Airways owner Naresh Goyal and Kingfisher chief Vijay Mallya have agreed a pact aimed at the survival of the loss-making airlines they control.
Times of India reports that the two aviation czars are forming an operational alliance that will command nearly 50% market share of the domestic skies.
The deal may ultimately lead to a consolidation once one of the players has access to funds to buy out the other, says the Times.
The alliance is expected to trim losses being suffered by both carrier and will embrace code-share agreements, route rationalization and shared services.
Kingfisher has been forced to drastically cut down on its owner’s ambitious international expansion and trim aircraft orders.
Aviation minister Praful Patel said with huge losses and no early sign of recovery from the current turmoil the “writing was on wall” for a Jet-Kingfisher alliance.
