New Delhi - India's top private-sector airlines Jet Airways and Kingfisher Airlines announced a wide-ranging alliance that will help both carriers to battle declining growth and cut fuel costs, news reports said Tuesday.

"The two airlines will be able to rationalize their operations and derive the maximum synergies and thereby offer the best possible fares for the benefit of consumers," the IANS news agency quoted from a statement issued by the companies.

The alliance was firmed up late Monday night following a meeting between Jet Airways chairman Naresh Goyal and his Kingfisher Airlines counterpart Vijay Mallaya.

The companies said the alliance would entail huge costs savings but declined to give details.

"The alliance will also enable a stabilization of the Indian aviation industry in the larger public interest for the benefit of the customer during the current downturn of world economies," the statement said.

Rivals Jet and Kingfisher had in 2007 bought smaller airlines as they fought for the top position in the Indian aviation market.

But India, Asia's second fastest growing aviation market, has seen a fall-off since early this year, as most of its airlines recorded losses.

Costlier ticket rates due to high fuel prices along with a slowing economy have hit demand forcing the airlines to cut costs and quit operations on loss-making segments.

The airlines posted a cumulative loss of 938 million dollars over the financial year ending March 2008.

Senior Indian aviation ministry officials have said the losses could double to 2 billion dollars this year, almost a third of the estimated 2008-2009 global aviation losses.

"India has witnessed tremendous growth in the past which has slowed down considerably. In this environment the alliance is a new industrial model for aviation in India," Goyal said.

"This is a quantum leap forward in the evolution of Indian aviation which will benefit customers through a comprehensive integration," added Mallya Kingfisher Airlines chief. (dpa)