MUMBAI: Country's leading private carriers Jet Airways and Kingfisher Airlines announced an alliance to overcome financial woes as the aviation industry continues to bleed due to high fuel costs."Both the partners recognize economic realities and benefits of the alliance. It is a meeting of both mind and heart," Vijay Mallya told reporters here after emerging from a meeting with Jet Airways chief Naresh Goyal. He said both Kingfisher and Jet had a common approach.

While the two leaders did not elaborate on the nature of the alliance, Naresh Goyal said: There is no equity involved in the partnership." The whole industry has been in trouble for the last four to six years and nobody is able to cover their costs. Cost is going up everyday, he added. Asked if the alliance could lead to a merger or equity participation, Goyal said, "there is no equity involved... We will give details when we meet at Hyderabad Airshow tomorrow."

In a joint statement issued after the meeting, the two corporate honchos said, "While maintaining their legal entities and brand entities, both Jet and Kingfisher will examine co-branding opportunities and have formed core committee of senior management personnel from both companies who will drive the various identified initiatives forward with immediate effect."Goyal, accompanied by wife Anita who is also Director, Marketing, of Jet, Executive Director Saroj Dutta, CEO, COO and other top officials, walked into Mallya's office for working out the details.Mallya is believed to have met Goyal at his office earlier.

"Both Jet and Kingfisher fully realize that better understanding of supply and demand in this capital and labor intensive industry is the key to profitability and enhancement of shareholder value."I look forward to this alliance delivering superior quality, cost savings, flexibility and enhance consumer value, which is the hallmark of all successful alliances," Mallya said.While Jet had earlier acquired ailing Air Sahara, Kingfisher had taken over the crisis-ridden Deccan to emerge stronger till the rising costs and global meltdown hit them hard with each of the entity losing about Rs 100 million a day.

The two corporate leader had met Aviation Minister Praful Patel last week, presumably to get his approval, for the alliance.Both Mallya and Goyal said had the alliance not come through, the two could have suffered and paved way for going back to monopoly days in the Indian sky where state owned entities alone operated. As per the agreement reached between Jet Airways and Kingfisher Airlines, the two carriers would cooperate in eight areas.

They are: --Code-sharing on both domestic and international flights, subject to DGCA approval.--Interline/Special Prorate agreements to leverage the joint network deploying 189 aircraft, offering 927 domestic and 82 international flights daily.

• Joint fuel management to reduce fuel expenses.
  
• Common ground handling of the highest quality.
  
• Cross-selling of flight inventories using the common Global Distribution System Platform.
  
• Joint network rationalization and synergies.
  
• Cross-utilization of crew on similar aircraft types and commonality of training as also of the technical resources, subject to DGCA approval.
  
• Reciprocity in Jet Privilege and King Club frequent flier programmes.