Spicejet had announced a five-day 1+1 special offer on August 3 as a means to boost ticket sales amid the coronavirus pandemic
SpiceJet has reportedly withdrawn its promotional ticket offer a day after announcement, as the Directorate General of Civil Aviation (DGCA) flagged it as violating the Centre’s competitive pricing terms.
SpiceJet said it has complied with the DGCA’s direction.
As per the Centre’s rules for domestic flight operations amid the pandemic, ticket fares are regulated to avoid unsustainable pricing by already financially stressed carriers.
The domestic carrier had announced a five-day 1+1 special offer on August 3 as a means to boost ticket sales amid the coronavirus pandemic. As per the offer, buying a ticket (priced at least Rs 899) between August 3 and August 7 would give customers a voucher for another ticket of same base fare, valid till March 2021.
Follow our LIVE Updates on the coronavirus pandemic here
A DGCA spokesperson told Mint the regulator wanted to “keep it simple for passengers.”
Sources told Mint that the aim behind SpiceJet’s move was to generate quick capital amid the pandemic. The move was seen as a way to “generate more revenue by getting the limited passengers to fly them rather than other airline,” a senior industry source told the paper.
Moneycontrol could not independently verify the report.
CRISIL in its July report said prospect for Indian airlines are grim as they stare at revenue loss of Rs 1.3 trillion between FY20-FY22 and most are also unlikely bounce back to pre-COVID-19 levels in the medium term.
(With inputs from PTI)
Follow our full COVID-19 coverage here