Wednesday, December 06, 2006

Price cut not to rise market share: Air Sahara

Air Sahara is discounting air fares up to 90%. What does it mean for the industry - is another price war on the cards, just as low cost carriers have decided to raise prices? President of Air Sahara, Alok Sharma gives his take.
Sharma clarifies that they are not calculating below cost per seat but below cost per plane. So they are very sensitive to what they need to recover out of the plane; and have made substantial progress in the last four-five months particular.
He further adds that this slashing of air fares has been done to mark their 13th anniversary and hence they wish to reward their passengers who have flown with them for all these years. But he affirms that this is not being done at the cost of losing out money substantially.