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Wednesday, September 5, 2007

Jet for cooperation with Air India

Jet Airways chairman Naresh Goyal on Tuesday advocated "cooperation" with state-owned carrier Air India, saying that the two airlines would then be able to capture half the aviation market in various sectors. Speaking in the presence of civil aviation minister Praful Patel at a function in New Delhi, Mr Goyal said, "The two airlines can cooperate in various spheres like ground-handling, technical (work), maintenance and catering. This is where most airlines make money, and not in operations. If Air India and Jet Airways cooperate, we can get 50 per cent of the market share."
Mr Goyal also proposed that the two airlines could co-operate on matching of schedules, flights, and code-sharing. Pointing out that cooperation between airlines would not mean the diminishing of competition in the aviation sector, Mr Goyal said, "Co-operation does not mean that the consumer has to suffer." He asserted that even on a busy global route like UK-Australia, there was cooperation between Qantas and British Airways just as there was cooperation between British Airways and Cathay Pacific on the UK-Hong Kong sector.
Mr Goyal also praised the performance of Air India. The Jet Airways chairman’s offer of cooperation is significant, considering that Air India and Jet are currently seen as rivals. Asked about his views on the issue, Mr Patel said, "Air India is free to take any commercial decision that they want to." Pointing out that business decisions of any organisation are driven by commercial considerations, the minister said it was up to Air India to see if it felt any business synergy with Jet. "The government doesn’t interfere with business decisions of Air India," he said

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