India's two biggest private airliners Kingfisher Airlines and Jet Airways yesterday night announced an alliance for joint operation to cut their losses by sharing their resources.

Kingfisher Airlines Vijay Mallya and Jet Airways chairman Naresh Goyal announced the alliance in a joit press meet in Mumbai last night.

Previously Jet Airways had acquired another private player Air Sahara. In a similar move Kingfisher Airlines had acquired Deccan Airways to increase the presence in the Indian aviation sector.

But soaring fuel costs and global economic slowdown pushed Indian aviation sector to a crisis and this forced major airlines to team up for survival.