Smaller airlines weigh options

The Indian airline industry has watched in disbelief as arch rivals Jet Airways and Kingfisher Airlines put their operational integration on the fast track, reports Lalatendu Mishra.

The Indian airline industry has watched in disbelief as arch rivals Jet Airways and Kingfisher Airlines put their operational integration on the fast track.

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While top executives of both the carriers immediately got into action to achieve the desired objectives, their counterparts in rival airlines such as national carrier Air India and low cost airlines IndiGo, SpiceJet and Go Air discussed the fall out.

All of them control 25 per cent market share while Air India has 15 per cent. There were concerns that the combine to control fares could attempt to mop up more market share by integrating or taking over weak carriers. However, given the market reality merger and acquisitions seems to be a distant possibility but an operational alliance to cut costs could be possible.

“The worry is unfounded. The share of full service airlines will fall and the low cost concept will take clear shape. We will offer attractive fares and fly more passengers,” said Ajay Singh, director, SpiceJet.