Kingfisher, Jet to soon launch domestic code-share flights

Kingfisher, Jet to soon launch domestic code-share flights

Six months after entering into a strategic alliance, Jet lite Airways and Kingfisher Airlines will soon launch code-share flights on select
routes.

"We are in discussions with Jet Airways on code-sharing on certain routes," a Kingfisher Airlines spokesperson told PTI here on Wednesday.

Both the private air-carriers, afflicted by mounting losses, had inked an agreement last October to work together on certain business aspects to minimise losses.

Kingfisher airlines and Jet would soon launch such flights (code-share) shortly," the spokesperson said without disclosing any further details. While initially the agreement would be limited to domestic routes, it would later be extended to international routes as well.

Code-sharing is an agreement between two airlines by which both can sell seats to customers on the same flight.

The scope of the strategic alliance includes code-shares on both domestic and international flights, joint fuel management to reduce fuel expenses.

Besides, common ground-handling, cross-selling of flight inventories using a common global distribution system platform and cross-utilisation of crew on similar aircraft types and commonality, are other key areas of the agreement.

Liquor baron and promoter of Kingfisher Airlines

The civil aviation ministry has revived a proposal to allow foreign carriers to invest in domestic airlines by putting it on its new list of
reforms. The proposal is viewed by the ministry, as one way to improve the bottomlines of cash-strapped domestic airlines.

Last year, when the country’s second-largest low-cost airline SpiceJet was starving for cash, foreign investor Wilbur Ross had come to its rescue. Most other Indian airlines are now caught in the same situation. The three major carriers — Air India, Jet Airways and Kingfisher — are estimated to have combined cumulative losses of Rs 8,000 crore in 2008-09.

Currently, non-aviation companies can buy up to 49% stake in a local airline. But a foreign airline cannot invest at all. While Kingfisher and Jet Airways are trying to raise funds through various routes, state-owned Air India is seeking around Rs 4,000 crore through soft loan and fresh equity infusion from the government. Liquor baron and promoter of Kingfisher Airlines Vijay Mallya has advocated foreign direct investment (FDI) by global airlines into domestic airlines.

Aviation consultancy Centre for Asia-Pacific Aviation (CAPA) head Kapil Kaul believes it will improve investors’ confidence in the industry. “Opening FDI route for foreign airlines would embolden private equity players and hedge funds to invest in the industry, following the entry of bigger airlines as strategic investors,” he said.

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