PANAJI, MARCH 10: India's third largest airline Sahara Airlines is planning to set up a subsidiary to handle operations in the feeder routes, according to its Director, Pervez Damania. ``We are waiting for the new aviation policy before taking a decision to set up a division,'' Damania said.Sahara Airlines hit the news recently with a discount war which saw major airlines like Indian Airlines and Jet Airways slashing fares. A truce signed by the airlines saw the restoration of old fares. Damania however insisted that lower fares helped fill up seats and thus compensated for the lower ticket price. ``Our occupancy increased from 60 per cent to 85 per cent,'' Damania said.Air passengers in India could still benefit from lower fares, says Damania. According to him a reduction in the inland air travel tax from the high 15 per cent of the basic fare would help a lot. ``Also aviation turbine fuel (ATF) costs 40 per cent more for domestic airlines as compared to foreign airlines,'' Damania noted.The proposed aviation policy of the Central Government could help connect small towns with India's major towns by air. The airline operator noted that special concessions in the price of ATF used by turbo prop aircraft could significantly lower prices and attract people who commute by road and rail, Damania said.
