Business Today Net Special

Sahara Spreads Its Wings

Having failed miserably to address the needs of the corporate travellers' market, U.K. Bose of the nine-year-old Air Sahara is planning to hit back at his rivals who are suffering due to paralysed air travel.

By Ashutosh Sinha

U.K. Bose

Aviation companies globally may have shed over 100,000 jobs but here is one airline that is talking about aggressive expansion. Having failed miserably to address the needs of the corporate travellers' market - its market share a measly 5 per cent currently against Jet's 46 per cent and Indian Airlines' 49 per cent - the nine-year-old Air Sahara is now getting ambitious. The timing is critical since market leader Jet Airways, hit by the September 11 incident, is going through a cost rationalisation.

Sahara is reaping the advantage of being a small player. It has just six per cent of its revenues coming from overseas passengers, compared to Jet's 28. So, it has not taken a big hit after September 11. Besides adding three more destinations to its 13, the number of flights are scheduled to increase from 36 to 46. Over the next six weeks, it is adding three more planes to its fleet of six. At a time when Jet talking of rationalising its flights, Sahara is clearly sensing its opportunity.

"We are increasing frequency and connectivity with a view to create a market where we already have a presence," says Air Sahara CEO UK Bose, who resigned last year and has taken charge again two months ago.

Other factors have contributed to Sahara's confidence. With aircraft leasing rates having plummeted after September 11, Sahara claims it has managed to bring down the leasing costs for its three new planes by 25 per cent. Besides, it is now launching a slew of schemes - discounted fares for weekend flights, flexi-pricing for tickets booked in advance and tie-up with Stanchart credit card holders to fly now and pay in interest free instalments.

With a passenger load factor (PLF) hovering around 40 per cent, Bose hopes that it will peak to over 55 per cent by the end of December. That is ambitious considering Jet's PLF 64.6 in August and 53.7 in September.

However, Sahara will also have to compete against its track record and its image. When it tried to resuscitate the ailing airline last year, with a new logo, new name and a marketing binge, it failed miserably. This time, Bose hopes, could be different.

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