Air Sahara not to offer equity to foreign firms

Ashwini Phadnis

NEW DELHI, Dec. 14

THE proposed Government policy move of allowing up to 49 per cent foreign equity in the domestic aviation sector is unlikely to find any favour with Air Sahara.

Senior Air Sahara officials told Business Line that the airline would not offer any equity though it may consider a technical tie-up with a foreign airline.

"There is no question of offering equity to any international airlines. We have not yet looked at the Indian market for offering equity, so where is the question of offering equity to a foreign airlines," they said here.

At a recent meeting, the task force of the Planning Commission looking into the framing of the draft civil aviation policy had recommended to the Government that it consider allowing foreign airlines into the domestic aviation sector. Further, it had suggested allowing up to 49 per cent equity participation by international airlines.

Meanwhile, the airlines' Chief Executive Officer, Mr U.K. Bose, is to meet with the CEOs of around 100 top corporate houses in Delhi, Bangalore, Mumbai and Kolkata to attract more business for the airlines. The tour, which commences in Delhi this week, is aimed at attracting more corporate business travellers on to the airlines.

"Air Sahara would like to have a mix of about 80 per cent corporate travellers and 20 per cent tourist and first-time travellers.

All efforts are being made towards this end including inducting new aircraft, increasing frequency of operations and improving the on-time performance," Mr Bose told Business Line.

The airline is to make several more announcements to stimulate the market by the end of the month including a possible tie-up with an international airline to offer free international travel to its frequent flyer members.

Besides, the airline is to launch more frequencies such as offering a service on the Bangalore-Mumbai and on the Mumbai-Goa sectors from the third week of this month.

The airline hopes to add four more aircrafts including two new generation Boeing 737-700 to its fleet shortly. The arrival of the aircraft will see the airlines' aircraft strength increase to 10.