India’s Consolidation Continues: Jet and Kingfisher Sign Alliance

If you don’t care about airlines in India, feel free to skip ahead…

The Indian airline industry has seen a massive amount of consolidation over the past couple of years, and that strategy continued today with Jet Airways and Kingfisher agreeing to an alliance that will control 60% of the domestic market.  The past couple of years have seen tie ups between Air India and Indian, Jet Airways and Air Sahara, Kingfisher and Air Deccan, and now this Jet and Kingfisher thing.  GoAir, SpiceJet and IndiGo remain independents (for now), but I’m not sure how they could possibly survive.  India’s airlines lost a billion dollars last year and are on track to lose $2 billion this year (high fuel prices, shrinking demand, lower fares all contribute).  Add to that ridiculous overlap on key routes and it’s a disaster.  The airlines have now turned to the government for a bailout (hm, sound familiar?)

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