Mumbai: India’s two largest private airlines Jet Airways and Kingfisher Airlines today joined hands and announced an alliance for sharing of their network and resources to meet the challenge of aviation downturn.

The deal, which was announced late Monday night, is aimed at reducing costs in the face of mounting losses in the aviation sector.

Announcing the alliance, both Naresh Goyal of Jet Airways and Vijay Mallya of Kingfisher Airlines said the coming together was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.

Kingfisher Chairman Vijay Mallya and his JetAirways counterpart Naresh Goyal shake hands after announcing their alliance in Mumbai on Monday. Santosh Hirlekar / PTI Photo

“Both the parties recognize economic realities and benefits of the alliance... it is a meeting of both mind and heart," Mallya, who earlier received Goyal, his wife Neeta and entourage of top officials at his office at his Ville Parle office said.

The Alliance would bring the two airlines, which account for nearly 60% of market share, to work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.

As per the agreement reached between Jet Airways and Kingfisher Airlines, the two carriers would cooperate in eight areas. They are:

1. Code-sharing on both domestic and international flights, subject to DGCA approval.

2. Interline/Special Prorate agreements to leverage the joint network deploying 189 aircraft, offering 927 domestic and 82 international flights daily.

3. Joint fuel management to reduce fuel expenses.

4. Common ground handling of the highest quality.

5. Cross-selling of flight inventories using the common Global Distribution System Platform.

6. Joint network rationalisation and synergies.

7. Cross-utilisation of crew on similar aircraft types and commonality of training as also of the technical resources, subject to DGCA approval.

8. Reciprocity in Jet Privilege and King Club frequent flier programmes.