Air Sahara buys 10 new Boeing 737-800 planes

New Delhi, Aug 28: Air Sahara today confirmed placing its first direct order to purchase 10 Boeing 737-800 aircraft worth over 700 million dollars (about Rs 3,290 crore) at list prices.

Deliveries will start in mid-2009 and continue for two years, said company's president Alok Sharma. ''The new planes can seat 162 to 189 passengers and will add to our fleet. They will be used for domestic and international operations.'' At present, Air Sahara has 18 new generation B737-700 and 800 besides classics 737-300 and 400 on lease. Recently, it announced adding 66 new flights and 14 new destinations in the next four months, connecting international cities like Guangzhou in China, Dhaka in Bangladesh, Male in the Maldives and Colombo in Sri Lanka.

Within the country, it will soon fly to second tier cities like Chandigarh, Indore, Bhopal, Vadodara, Raipur and Nagpur as well. The airline is also targeting tourist destinations like Jodhpur, Khajuraho, Port Blair, Trivandrum and Udaipur.

Air Sahara's renewed optimism comes after its buyout deal with Jet Airways fell apart. Sahara alleged that Jet was looking for a price cut from the agreed Rs 2,300 crore to Rs 1,800 crore.

Both companies are now locked in a bitter legal battle. Jet's acquisition plan went haywire five months after the biggest deal in Indian civil aviation sector was announced. After operating Sahara for some time, Jet was apparently unhappy with its liabilities and sought a discount on the deal.

There were reports that Sahara's balance sheet indicates a financial mess. Air Sahara declined and refused to renegotiate the price, sparking the war which has moved from boardroom to courtroom.

Air Sahara has a share of seven to eight per cent in the booming air travel market with new low-cost airlines coming up every few months.

UNI