Sahara cuts fares by 25%

Triggering a fresh round of fare war in the Indian skies, private carrier Air Sahara today slashed fares across the board by over 25 per cent.

This move, according to aviation industry sources, is a part of the carrier's move to improve its market share, and marks the beginning of the lean season.

Other carriers, including the low-cost ones, are expected to follow suit ahead of the lean season. Executives with several airlines said they were taking stock of the situation and would take a call in the next few days.

Indian Airlines recently simplified its low-fare offering, doing away with advance bookings.

It is typical of airlines to cut fares for the lean months of July, August and September and launch innovative marketing schemes to improve the increase passenger load factor and maintain their market share. Historical data show that during the lean season, passenger traffic falls by 15 to 20 per cent compared with that in the peak season.

Air Sahara also decided to discontinue with its multiple low-fare schemes, including last-minute bookings, as well as 30-day advance bookings.

From now on, passengers can book low-fare tickets the same day subject to availability of seats.

"We want to stimulate the aviation market further. There will be one bracket of low fares instead of a multiple fare structure," said Alok Sharma, vice-president (marketing), Air Sahara.

For example, the low fare now on the Delhi-Mumbai sector will be Rs 3,333 compared with the 30-day apex fares of Rs 4,170. Air Sahara's full fare on the sector is Rs 8,649.

"We have been seeing a load of 3.5 lakh passengers every month. If we can push it up by 10 per cent, it will add a lot to our operations. This will not happen from the top and has to come from the low end. This is one of the main reasons for cutting the fares," said Sharma.

According to Sharma, the new fares are about 67 per cent lower than the normal full-service fare on any sector and about 25 per cent lower than the cheapest advance booking fares offered by the carrier.