Sahara Airlines is likely to maintain the Delhi-Mumbai air fare at Rs 3,555 till August 15. This follows decisions by Indian Airlines and Jet Airways to continue with the discounted fares.
After the 15th, if the other two carriers go back to the original fare of Rs 5,110, Sahara may raise the fare marginally, but will not return to the original Rs 5,110.
Sahara Airlines sources said the carrier held a pricing strategy meeting in Mumbai a few days ago and that it was planning to peg its fares to IA's. Said Kapil Kaul, director, marketing: "If IA withdraws its discount, we will revise our fare upwards but will not return to Rs 5,110. If it continues, we are likely to remain at Rs 3,555." He added that the carrier will offer a price advantage and certain value-added incentives to passengers travelling in the sector.
Indian Airlines yesterday issued advertisements in national dailies extending the discounted fare till August 15. Responding to this, Jet airways also changed its earlier decision of returning to the higher fare of Rs 5,110 late Thursday night. On July 26, the carrier had issued a circular to travel agents saying that it was withdrawing its discounts from August 1.
Aviation industry sources, however, said this may not mark the end of the fare war. They said traffic is unlikely to pick up till September. Even after that, things may not pick up, if present trends are anything to go by.
