Air Sahara slashes fares

Cash-strapped Air Sahara has kicked off another price war in the air, offering fares on an average 25 to 30 per cent lower than even budget carriers on key routes across the country. The airline is offering a limited number of tickets, with the cheapest one coming at a 91 per cent discount provided passengers plan their travel 30 days or more in advance. The tickets are up for sale between December 1 and December 15, being valid for travel between January 1 and April 30, 2007. The “Steal-a-Seat” offer will extend to key routes, including Mumbai, Delhi, Hyderabad, Bangalore, Goa, Kolkata, Hyderabad and Chennai. Under the offer, the airline is offering two fares, one that is lower than normal fares by 80 per cent (M class), and the other that is providing a discount of 90 per cent (G class). For instance, Mumbai-Delhi is available for Rs 925 (in G Class) and Rs 1,925 (in M Class), against a normal fare of Rs 9,515.

“This is not a gimmick! It is an effort to celebrate our 13th anniversary,” said Alok Sharma, president, Air Sahara. Commenting on the possible pressure on the carrier’s bottomline, he said, “We have added capacities and we are still doing that. We want to recapture our lost market share and increase the load factor.” Air Sahara’s market share fell from a peak of 14 per cent last year to a low of 6.68 per cent in September. However, competitors and analysts say the move could be disastrous for the airline. GR Gopinath, managing director of Air Deccan said, “The economics are simple. Our costs are half of those of a scheduled airline. We will continue to sell tickets at a cost plus; if someone wants to sell at a lower price, he is welcome.”

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