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Jet-KF alliance fine if within rules: Praful Patel
Civil Aviation Minister Praful Patel said he would have no objection to the Kingfisher-Jet alliance as long as it was within the Directorate General of Civil Aviation (DGCA) guidelines. The Civil Aviation Ministry and DGCA will take action if the airlines were found taking advantage.
Civil Aviation Minister Praful Patel has said he would have no objection to the alliance between Kingfisher Airlines and Jet Airways as long as it was within the Directorate General of Civil Aviation (DGCA) guidelines. The Civil Aviation Ministry and DGCA will take action if the airlines were found taking advantage.
He also added that the government was considering a bailout package for aviation companies, adding that he was asking for Rs 1,000-1,500 crore equity infusion in Air India.
Earlier on Monday, Kingfisher and Jet announced a strategic pact as a measure to cut costs. The two companies made a pact for common fuel management, ground handling, network rationalisation and cross-crew use. The two airline rivals also joined hands for cross sales and staff training.
Kingfisher Chairman Vijay Mallya had said, "We both (Kingfisher and Jet) recognise economic realities and this is a path-breaking alliance between India's leading carriers. We would be respectful and mindful of Indian regulations," adding that the alliance would help save money and pass on the benefits to consumers.
Naresh Goyal, Chairman of Jet Airways, added that the Indian aviation industry has been going through trouble for the last few years and has already seen some consolidation.
Meanwhile, the DGCA has remained tight-lipped over the alliance and said it is yet to receive any formal communication from either parties. It added that it can comment on the deal only after getting details of the agreement between the private carriers.
