India's leading private carriers Jet Airways [Get Quote] and Kingfisher Airlines on Monday announced an alliance to overcome financial woes as the aviation industry continues to bleed due to high fuel costs.

"Both the partners recognise economic realities and benefits of the alliance. It is a meeting of both mind and heart," Vijay Mallya told reporters in Mumbai after emerging from a meeting with Jet Airways chief Naresh Goyal.

He said both Kingfisher and Jet had a common approach.

While the two leaders did not elaborate on the nature of the alliance, Naresh Goyal said: There is no equity involved in the partnership."

The whole industry has been in trouble for the last four to six years and nobody is able to cover their costs. Cost is going up everyday, he added.