In a booming market, these changes will be hard to calculate for us outsiders. Having said that, two things still apply:

1. The Indian people should be happy to have another 'Indian' airline as an option to Air India.

2. Air India is supported by tax payers money. I doubt they care for load factor as much as some private operator, since everything I have read about them seems to suggest that they do not care about service, cleanliness, etc.

Having seen some cabin shots of both airlines on various websites, I think it is pretty obvious that most people would prefer Jet over the Indian Government Airline. So no surprises if Jet are indeed poaching Air India from Air India.

In future, I think global alliances will play a much bigger role in deciding which of these two carriers survives.