Jet-Kingfisher alliance yet to gather momentum, says Goyal
Mumbai: Jet Airways Chairman Naresh Goyal
said the strategic alliance forged almost a year ago between
his company and Kingfisher Airlines has still not achieved
"I can`t really tell you when it (strategic alliance)
would be fully operational. We have been discussing, but
nothing much has been done yet," Goyal told reporters on the
sidelines of a function here.
Goyal-owned private air-carrier, Jet Airways, and Vijay
Mallya-promoted Kingfisher Airlines had sealed a strategic
alliance in October last year with a view to curtail costs
after crude prices had shot up astronomically.
Goyal, however, said the two partners have taken certain
steps to synergise their operations.
"We have done certain things. We are co-operating in
engineering and (sharing) some other facilities in order to
improve our bottom lines. We have been looking at how we can
improve our cost structures, especially in engineering," he
Goyal also advocated a 20-25 per cent increase in fares
across the board to bridge the gap between input costs and
revenue. The industry has been faced with a situation in which
the former has been increasing while the latter has been
falling. Jet-Kingfisher is alliance yet to gather momentum, he
"I think today the industry needs around a 20-25 per cent
rise in fares because there is a need to cover costs and also
to break-even," Goyal said.
He said the domestic aviation industry is on an average
losing Rs 800-900 crore due to a 20-25 per cent gap between
revenues and costs, which he attributed to irrational pricing
"Every one is doing irrational pricing. Every one is
selling below prices. We don`t want to sell below cost," Goyal
However, when asked if he had any plans to hike fares he
declined to give specifics, saying, "I don`t know."
On the strike-call by Jet Airways pilots union, National
Aviator`s Guild on September 7, Goyal said the government has
already declared the strike as "illegal" and hoped that the
pilots would follow the law.
"It (dispute) is with the conciliation officer, who has
already termed the proposed strike as illegal. We will do
whatever is needed to be done," he said.
More from India
More from World
More from Sports
More from Entertaiment
- PM Modi slams Pakistan govt during his speech in Kozhikode
- Panel discussion over PM Modi's willingness to engage in direct dialogue with Pak
- Panel discussion over PM Modi's willingness to engage in direct dialogue with Pak - Part II
- PM Modi calls meeting to review Indus Waters Treaty today
- Watch: Sushma Swaraj addresses the UN General Assembly
- SHOCKING VIDEO: This man was trying to take selfie with python - You won't believe what happened next!
- Donald Trump praises Hindu community's contributions to US
- WATCH: Ravichandran Ashwin's magic ball that bamboozled Kane Williamson on Day 3
- Uri effect? India, Afghanistan bypass Pak to set up exclusive air corridor
- Govt calls meet on Indus Water Treaty; Water Resources Ministry, MEA to brief PM Modi