After struggling to get their international routes launched (BLR-SFO) and profitable (BLR-LHR), and facing off with the Indian aviation authorities on the routes served, it looks like Kingfisher will now partner in some way with Jet Airways in order to survive.
Kingfisher recently balked on the purchase of the five Airbus 340-500 planes that they were going to use for their non-stop operations to the United States, so that’s off the table. And they’ve run in to trouble with the locals on operating less profitable, public service routes that Indian carriers are required to do. Plus, Jet and Kingfisher are also both still dealing with previous mergers within India.
There is no indication on what this will do to the current alliances that the carriers are working towards (Kingfisher seems to be moving towards SkyTeam and Jet Airways seems to partner with just about everyone). And there has been no equity exchange at this point between the two carriers.
More info here.
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