Transfering from Air India to Kingfisher - Mumbai

Hello,
It's our first time in India aswell the first time transfering on a domestic flight. And after only reading horror stories on Mumbai Airport we wonder if we have done right..
The trip consists from 2 flights, 1 carried out by Air India and the other by KingFisher.

Mon, 05 Mar 2012

- Air India AI471 UDR 15:05 - 16:20 BOM

- Kingfisher Red IT2121 BOM 18:25 - 19:50 HBX

Now we wonder how the transfer takes place at Mumbai. How does the luggage transfer? And do we need to check in again in Mumbai, as we only have 2 hours between arrival and departing I wonder if that is possible. It is one of the more strict parts of our trip as we have to get on a train in Hubli that night.

Also when checking trough other threads I came across negative news regarding Kingfishers. Does this still apply? I just booked the tickets yesterday via Expedia, as that seemed to be a reliable source. Thanks for the information and help.

Kingfisher Red has being phased out. Check the status of the flights coded such for March. If both AI & IT flights were in the same PNR, your luggage should be tagged for final destination. The BOM-Hubli route pair might have risks involved in terms of scheduling.

Two week old rumours/news say that Kingfisher has grounding quite a few planes and is cannibalising parts for its other (still flying) aircraft for financial reasons (maintenance schedules due, so why spend money when you are losing it?) Many Kingisher flights were cancelled around that time, dunno situation today.

My takeaway from this- higher chances of flights being cancelled on less lucrative sectors.

Thanks for the info!

PNR = ? (Terminal?)

They both should arrive and leave at terminal 1.
Also seems as KF is the only option from Mumbai to Hubli(to get to Hospet/Hampi), so no real choice there.

Aside from all this, in theory 2 hours should be well enough to transfer?