Friday, November 17, 2006

Spicejet under MRTPC scanner for unfair trade practices

New Delhi: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has initiated two cases of unfair trade practice against low-cost carrier Spicejet.
MRTPC's investigative arm Director General of Investigation and Registration (DGIR) in an investigation found that Spicejet refused to refund amount of air ticket on cancellation as it had adopted a practice not to refund the booking amount.
The terms of carriage of the company provided that booking amount was non-refundable. However, if the ticket is canceled two hours prior to departure the balance amount subject to cancellation fee is retained in a credit shell up to one year which can be used as payment for future travel.
On the other hand, cancellation within two hours departure or failure to check in for its flight at least 30 minutes before the scheduled departure will result in the fare being forfeited, it said.
In the second case, DGIR said Spicejet did not adopt fair method for booking tickets while providing its anniversary offer of Rs 99 a seat through internet. DGIR noticed that there was an overwhelming response and traffic for ticket booking increased manifold on its website, which made it very slow. This resulted in failure to complete booking by Internet users.
Spicejet failed to display the information on its website that prospective customers could book tickets over telephone because of disruption of Internet booking.
16/11/06 PTI/Daily News & Analysis
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