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Sahara Airlines on expansion spree

Our Bureau

PANJIM, Nov. 5

SAHARA Airlines plans to induct two more Boeing aircraft into its fleet shortly. This will increase the company's fleet size from the present six to eight.

The company has set for itself a target of capturing one-fifth of the domestic market by December 2002. It will continue to increase its fleet in phases till the end of the next year in order to achieve this target, said Mr U.K. Bose, Chief Executive Off ice (CEO), of the airlines.

``We intend to expand fast and increase our present market share of nine per cent to 19-20 per cent by December 2002,'' he said.

The expansion programme will be financed through funds from the parent group as well as borrowings from financial institutions. The company is currently negotiating with IFCI and IDBI for funds.

Sahara Airlines plans to work on two fronts, apart from the promotional activities, for achieving the 20 per cent target. The primary focus will be to increase connectivity and frequency for which the company has chalked out a detailed route plan.

The company already has technical tie-ups with KLM and Lufthansa and is in talks with two other foreign airlines for marketing tie-ups. This will help the company increase the foreign exchange component of its total revenue. At present, foreign exchange contributes to about 3-4 per cent of the company's total revenue.

The company is planning to host several promotional activities on board over the next few months. `This will create an awareness among the potential passengers of our advantages,' Mr Bose said.

Sahara Airlines will spend around Rs 5 crore during November in promotional campaigns. ``We are going in for expansion at a time when no one is even thinking of expansion. Though we had been planning it for the past four months, the way the financial mar kets reacted to the September 11 incident will actually help us,'' he said and added that ``in that way our timing is right.''

The company has already launched a scheme of auction on board for branded items and plans to include various activities for entertaining passengers. It will also launch a frequent flyer programme called `Power Flyer Programme' shortly.

The company is also in talks with Gladrax for becoming the official airlines for the Gladrax fashion show. Negotiations for this are in an advanced stage, company officials said.