SpiceJet has been raking in the moolah for the past couple of months with various discounts and offers. The budget airline announced a Re 1 base fare air ticket price in its much talked about summer sale on April 1. But now SpiceJet’s marketing tactics, which took off very well, might not have a smooth landing after all.
The Economic Times reports that the Directorate General of Civil Aviation (DGCA) has objected to SpiceJet’s practices, which it has called, “anti-competitive, predatory, a malpractice and deceptive to boot”.
SpiceJet argued that since it had only 20 percent market share in Indian aviation, it could not possibly eat into someone else’s pie.
“While we planned for high response, our website was at times unable to cope with the high traffic that was generated due to the high booking activity that was taking place simultaneously as customers took advantage of the market-stimulation fares,” said SpiceJet in a statement.
The aviation body issued a show-cause notice to the airline asking how many seats will be available for sale. “The price is linked to the number of seats and only a very few seats are sold on promotional fares,” replied SpiceJet.
By the time the DGCA took action, the SpiceJet website had crashed as a result owing to a rush of buyers.