SpiceJet Sticks to Aggressive Discounts Under New Owner

SpiceJet has got a new owner, but the budget carrier seems to be sticking to its old strategy of aggressive discounting on advance travel to earn quick bucks for now. Late on Tuesday, SpiceJet launched another "Super Sale" offering 5 lakh seats at a starting fare of Rs 1,499 all-inclusive.

To qualify for the offer, passengers have to book tickets between January 28 and 30, SpiceJet said in a statement. The tickets can be booked for travel between February 15 and June 30. A ticket on the busy Delhi-Mumbai sector was available for as low as Rs 2,036 under the sale offer on Wednesday morning. The regular price for the travel was pegged at Rs 5,775 on SpiceJet's website.

"Such Super Sale offers are meant to sell in advance at attractive prices, seats that would otherwise be expected to go empty, thereby improving revenues," said SpiceJet’s Chief Commercial Officer Kaneswaran Avili.

The fare slash is aimed to shore up revenues during the lean travel season - between January and the start of the summer break in May, analysts say.

SpiceJet, which was forced to ground its fleet briefly last month because of a cash crunch, has been bought by its co-founder Ajay Singh. Mr Singh is expected to invest Rs 1,500 crore in the ailing carrier. SpiceJet has been making losses since 2013.

"As we continue on our re-structuring path, the return of our Super Sale in 2015 at the onset of low season is a continued vote of confidence in the fact that such sales and promotions, if done right, are a win-win-win for customers, airlines, and the travel ecosystem at large," said Spice Jet chief operating officer Sanjiv Kapoor.

SpiceJet's "Super Sale" comes close on the heels of a similar offer by rival AirAsia, which is offering tickets for as low as Rs 699 (all-inclusive) on advance bookings. AirAsia's offer, open till February 1, is for travel between August 3, 2015 and March 26, 2016. 

Promotional offers from different airlines boosted passenger traffic growth last year. During January to November, passenger traffic growth was more than 9 per cent.