New Delhi: Terming SpiceJet's offer of Re 1 fare across its domestic network as "predatory" and a "malpractice", aviation regulator Directorate General of Civil Aviation (DGCA) on Tuesday directed the budget carrier to stop such pricing with an immediate effect.
The DGCA asked to stop the three-day offer "immediately" after SpiceJet offered fares as low as Re 1 valid for domestic travel till next year.
According to a report published in PTI, such pricing was "not only predatory", but it amounted to "malpractice" under Rule 135 of the Aircraft Rules relating to air tariff, official sources said.
The fact that only one or two seats were being offered on each flight at the rate of one rupee amounted to "deceiving the travelling public", they said, adding that the airline was making such an offer for 91 sectors across the country.
According to the Rule 135, "When the Director General (of Civil Aviation) is satisfied that any air transport undertaking has established excessive or predatory tariff...or has indulged in oligopolistic practice, he may, by order, issue directions to such air transport undertaking."
02/04/14 Daily Bhaskar
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The DGCA asked to stop the three-day offer "immediately" after SpiceJet offered fares as low as Re 1 valid for domestic travel till next year.
According to a report published in PTI, such pricing was "not only predatory", but it amounted to "malpractice" under Rule 135 of the Aircraft Rules relating to air tariff, official sources said.
The fact that only one or two seats were being offered on each flight at the rate of one rupee amounted to "deceiving the travelling public", they said, adding that the airline was making such an offer for 91 sectors across the country.
According to the Rule 135, "When the Director General (of Civil Aviation) is satisfied that any air transport undertaking has established excessive or predatory tariff...or has indulged in oligopolistic practice, he may, by order, issue directions to such air transport undertaking."
02/04/14 Daily Bhaskar
