The Directorate General of Civil Aviation (DGCA) has ordered SpiceJet to immediately stop the sale of
discounted tickets, calling it ‘predatory pricing’ by the airline and an attempt to ‘deceive the public’.
The low-cost carrier announced a three-day sale on Tuesday morning slashing base fare across its domestic network to INR1, available for booking from 3 April for travel between 1 July 2014 and 28 March 2015.
“We wrote to SpiceJet asking the basis of INR1 fare. In its reply, the airline said the fares were for a very limited inventory of about 1.7% which would mean 1 or 1.5 seats per plane,” a DGCA official told the Hindustan Times.
“We do not believe that our pricing was predatory in nature since it is with the intent to stimulate demand, and is not intended to reduce or eliminate competition; with a market share of 20%, we are not in a position to be predatory,” SpiceJet said in a statement.