Jet "still talking" to Kingfisher for code sharing

More than a year after joining hands with Kingfisher Airlines, Jet Airways is still in talks with the Vijay Mallya-led carrier for code sharing and other initiatives to achieve operational synergies and reduce costs.

"We are still talking (with Kingfisher)," Jet Airways Chairman Naresh Goyal told PTI when asked by when will the two airlines reach the code sharing agreement for flights and take other measures to increase cost effectiveness.

Under a code sharing agreement between two airlines, passengers of one carrier can board flights of the other.

In October 2008, the two carriers had announced strategic alliance to help reduce cost and enhance efficiency through code-sharing on domestic and international flights, joint fuel management, common ground-handling services and cross-selling flights through the global ticketing system.

On Jet's plans to raise $400 million (about Rs 2,000 crore) through qualified institutional placement (QIP) of shares, Goyal said, "We have applied to Foreign Investment Promotion Board (FIPB) for approval. We are waiting for the approval. Then we will look at it accordingly."

Jet had taken shareholders' approval for raising the amount through QIP to meet cash flow requirements.

Goyal today met Commerce and Industry Minister Anand Sharma here on the backdrop of the aviation industry's demand that foreign carrier be allowed to pick up stake in domestic airlines.

However, it is under stood that Goyal is against equity participation by foreign airline in Indian carries.

Current government regulations do not permit foreign carriers to buy stake in domestic ones, although foreign direct investment is allowed up to 49 per cent through automatic route.