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Opinion - Letters
Airlines in alliance

It is heartening to note that Kingfisher and Jet are all set to fly into a holy alliance. In adversity and turbulent times, one tends to look for the right companion. The strategic alliance that is being worked out by these airlines is a worthwhile attempt at achieving synergies towards cost cutting.

Passenger load is crucial to judge the viability of operating costs.

Low fares in the airline industry have a cut-off point, beyond which further fare-slashing may be tantamount to operational suicide, especially in a service-oriented industry.

The quality of service is of paramount importance to woo passengers. Areas such as code-sharing, ground handling, sales, etc., can be looked at to reap jointly the benefits of economies of operation.

Amidst recessionary conditions the world over, and when push comes to shove, complex problems need out-of the box solutions. And such tie-ups, though unconventional, may prove a boon to the airlines industry.

Ashok Jayaram Bangalore

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