Riding the strength of its alliance with Kingfisher Airlines, another private carrier Jet Airways [Get Quote] has laid off up to 1,000 employees to rationalise its operations.

The entire force of unconfirmed staff is being laid off on a 30-day compensation package, a top Jet Airways official, who did not want to be named, told PTI.

The staff, which has been retrenched is from all across the operation and letters severing their services, were given on Tuesday, he said.

Jet Airways and Kingfisher Airlines, both of which account for 60 per cent market share in India had announced an alliance on Monday night to share their resources and routes.

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Both Naresh Goyal of Jet and Vijay Mallya of Kingfisher are in Hyderabad to attend the Airshow.

"It is part of handling economic slowdown and carefully rationalising the operation," the official said adding the downsizing is based on capacity, load-factor and traffic patterns.

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The rationalistaion also seeks to optimise the operations in line with the rationalisation of its flight and he pointed out that the airline has stopped some of its existing flights including that to San Fransisco.

Earlier while announcing the alliance, both Goyal and Mallya had said that the coming together was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.

The alliance would work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.