AIR DECCAN-JET AIR TIE-UP
Jet Airways, Air Deccan
to join hands
Both carriers may share flier benefits, maintenance, routes
BY A CORRESPONDENT
11th January 2006
New Page 1
Jet Airways and Air Deccan are in talks for possible cooperation in
domestic operations. Jet Airways is India's largest private sector
full-service airline, while Air Deccan is the largest low-budget
carrier.
Preliminary discussions on possible partnership ideas came up at
meeting of Jet Airways founder chairman Naresh Goyal and Air Deccan MD
captain GR Gopinath in Mumbai. Both the top bosses have already
confirmed the talks.
Among other aircraft, both Jet Airways and Air Deccan fly ATR
turboprop aircraft. It is expected that the partnership could joint
maintenance, sharing of frequent flier benefits and making use of the
partner's aircraft during delays and cancellations. No stake deals
were discussed, it is learnt.
"We are looking at ways to cut costs further," Air Deccan's Gopinath
was quoted as saying.
With the mushrooming of private airlines in India, competition has
reached fever pitch, and players are looking for novel options to
expand. Since Jet Airways is strong in the metro-to-metro routes and
Air Deccan in metro-to-non metro routes, a coming together of the two
airlines is believed to be of immense benefits to both.
Air Deccan started flying as a low-cost airline and quickly gained
market share. However, Jet's market share has come down in the last
fiscal year, to 37%. A year back, Jet commanded a share of 41%. |
