Air Sahara to spread wings, aims to double market share

Rupali Mukherjee

Panaji, Nov 5: Notwithstanding recession in the aviation sector, Air Sahara is planning major expansion schemes and is aiming to double its market share by the end of 2002 from an existing nine per cent.

Armed with a new strategy which includes various marketing initiatives, the airline plans to grow by luring passengers from other airlines as well as increasing the segment of travellers.

"We are expanding our fleet to reduce costs by increasing frequencies and being a small operator helps. At the same time, we are launching various schemes which will be a win-win opportunity for everyone -- passenger, airline and companies," Air Sahara chief executive officer Uttam Kumar Bose told The Financial Express.

In the first phase of expansion, the airline will put into operation three Boeing 737-400 aircraft by the month-end, taking its total fleet size to eight and increase its flights to 53 from the existing 36 daily frequencies.

Of these, two have been leased from an American company, Mr Bose said, while the third aircraft was not in operation earlier. The airline will be investing around $5 million for the expansion in fleet from internal accruals.

"Taking advantage of the 30 per cent drop in lease rentals, we plan to go for more leased aircraft at a later stage," he stated, adding "We are also in talks with financial institutions to raise debt for the second phase of expansion."

Elaborating on marketing strategy, he said that the airline is launching a frequent flier programme ‘Power Fly Mileage’
with value-added benefits to passengers. "This will have an impact on our load factors," Mr Bose said.