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Pawar, Patel brought rivals together

Economy Bureau

Posted: 2008-10-15 23:35:57+05:30 IST
Updated: Oct 15, 2008 at 2335 hrs IST

Mumbai, Oct 14: Agriculture minister Sharad Pawar and civil aviation Praful Patel have been instrumental in bringing the aviation sector’s biggest rivals together. Naresh Goyal and Vijay Mallya, promoters of Jet Airways and Kingfisher, respectively, closeted after their separate meetings with Pawar in Mumbai last week. The meeting took place after the intervention of civil aviation minister Praful Patel.

Sources close to Pawar confirmed the meetings and said Pawar asked Goyal and Mallya to forget rivalry and explore various options of alliance to tide over the critical situation.

“Pawar is believed to have asked Goyal and Mallya not to expect too much support from the government and stop blame game. Pawar, who enjoys good rapport with both Goyal and Mallya, also made it amply clear that it will not be possible for the government to release a cheque of say Rs 2,000 crore as relief fund since it is not possible under the Indian Constitution,” sources said.

Also, Pawar brought to Goyal’s notice that his airline was incurring heavy losses on account of its international operations. He advised Mallya not to hasten the launch of services on international routes in such a volatile situation.

Patel will meet Goyal and Mallya on Wednesday at the sidelines of the airshow at Hyderabad. Goyal and Mallya are expected to update the minister about the alliance being worked out to tide over the present crisis. Patel while talking to FE on Tuesday confirmed that he is likely to have a meeting with the duo. He, however, explained that the alliance would be a reality only after all regulatory formalities are completed.

The alliance is for sharing codes on domestic and international flights, leveraging the joint network, joint fuel management, common ground handling, cross selling of flight inventories, network rationalisation, cross utilisation of crew and reciprocity in Jet Privilege and King Club programmes.

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