It gets tougher for Air India

NEW DELHI: The Jet-Kingfisher alliance is expected to leave Air India ��� the only other full-service carrier with a national footprint and international operations ��� in the lurch. The alliance would enable Kingfisher and Jet to provide better services to upper-class passengers, intensifying competition for the state-run carrier, industry sources said. The national carrier is already struggling with huge accumulated losses.

While the airline industry has sought a bailout package from the government, Air India has asked for enhancement of its equity base and a separate rescue package. The national carrier has assured the government that synergies from the IA-AI merger would lead to significant savings in future and infusion of funds at this stage would help the company return to profits.