July 7, 2006
E&Y to review Air Sahara` business plan
Air Sahara has asked Ernst & Young to review the current business plan of the airline to revive the business and regain lost market share. After the failure of the much talked Rs 23 billion acquisition deal between Jet-Sahara, the Lucknow based-airline is exploring private equity placement routes to infuse fresh capital of USD 100 million, that will fuel revival plans, reports Business Standard.
Air Sahara President, Alok Sharma stated that the airline needs to bring our passenger back to airline. He said that the company has asked the Ernst & Young to revisit the current business plan in the changed scenario and the new business plan will advise the airline about raising fresh capital. Further, it will guide the airline about the fund required to raised and various routes of fund raising, Sharma added.
Admitting that airline had lost several employees including engineers and pilots, Sharma said Air Sahara has made alternate arrangement to fly aeroplanes.
Significantly, Air Sahara has re-launched one of its competitive schemes `Sixer in Air`, offering six economy flight coupons worth Rs 26,00 for travel on any domestic sector up to September 30.
The scheme `Sixer in Air`, which is inclusive of taxes, would imply that each ticket would cost Rs 3,808 plus taxes compared with a range of Rs 4,775-Rs 5,335 being offered by other full-service carriers.
The airline has also announced a new low economy class fare of Rs 8,500 plus taxes on its Delhi-Singapore-Delhi sector.
The airline President indicated that the airline plans to taking two Boeing 737-800 aircraft in the month of August and September. Two more aircraft will join our fleet in the month of January and February. With that Air Sahara will have a fleet of 32 aircraft by February 2007.
This is in addition to airline`s original plan to acquire 10 aircraft, he added. Currently, Air Sahara has a fleet of 27 aircraft including new generation Boeing aircraft and seven CRJ-200s. The airline has also four helicopters, which provide charter services.