SpiceJet denies cartelisation in airfare pricing, says mkt forces driver

New Delhi: No-frills carrier SpiceJet on Wednesday denied cartelisation in air ticket pricing, saying the movement in fares was driven by market forces and competition.
"When one airline changes fares, others match them immediately due to dynamic pricing policy practised by them," SpiceJet CEO Sanjay Aggarwal told reporters here.
Earlier this month, the Directorate General of Civil Aviation (DGCA) wrote to all scheduled domestic carriers asking for information on the simultaneous air fare hike in the second week of February. It had also asked for transparency in airfare advertising.
While acknowledging that the government has asked airlines to offer one composite airfare structure to passengers, Aggarwal said that it would happen when all carriers act together on the single-fare issue.As for the current fare scenario, he said that the ticket prices are down about 10 per cent compared to last summer.
"The fares currently being offered are about 10 per cent less than June, July, and August last year," Aggarwal said.
He also said that he expects "zero growth" in the current calendar year for the Indian aviation industry.
"For the next quarter and the rest of the current year, there will be zero growth for the sector," he said.
25/02/09 ZeeNews

To Read the News in full at Source, Click the Headline

Categories: SpiceJet Feb 2009