Jet Airways enters into grand marriage with Air France and KLM Royal Dutch Airlines

Jet Airways and Air France-KLM on Wednesday announced a partnership to route more traffic through Europe and on to North America, in a potential challenge to Gulf carrier Etihad Airways.
Jet Airways aircraft. (File photo | Reuters)
Jet Airways aircraft. (File photo | Reuters)

MUMBAI: Jet Airways entered into a metal neutrality pact with Air France and Dutch Airlines for further strengthening operations between India and Europe and predicted the grand alliance would enable an addition of USD one billion in the revenue of alliance partners.

Terming the agreement as 'Marriage Without Dowry', Jet Airways chairman Naresh Goyal said that the agreement is not a joint venture but is beyond the Codeshare agreement signed with the airlines.

Interestingly, under metal neutrality airlines become effectively indifferent to which plane or ‘metal’ carries a passenger. This form of cooperation is a close substitute to a merger because it typically involves full coordination of the major airline functions on the affected routes, including scheduling, pricing, revenue management,
marketing and sales.

Jean-Marc Janaillac, chairman and chief executive officer of Air France-KLM and Pieter J Th. Elbers said that the agreement will offer Indians 500 destinations on a same day from any city of India to any city in the US and Europe.

It is learnt that the alliance is looking at 40 per cent increase in passenger load factor from India and Europe. The alliance has a share of 1.2 million passengers and the goal is to increase it to 1.7 million passengers.

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