 "DGCA's move to restrict SpiceJet's sales window will hurt all airlines: aviation sources")
Directorate General of Civil Aviation's move to restrict SpiceJet from selling tickets beyond 30 days may be a pro-consumer step but will hurt all airlines, say executives.
A large chunk of SpiceJet's sales are for flights beyond 30 days. "How would the airline fill up flights now. It will have to keep fares low. While the DGCA should monitor schedule, restricting sales would hurt SpiceJet and other airlines too," said a senior executive of rival airline.
All of SpiceJet's discount offers earlier in the year have been for travel beyond 30 days and other airlines too have been cautious not to discount tickets closer to date of travel as it impacts revenue.
SpiceJet chief operating officer Sanjiv Kapoor said, "We will not arbitrarily drop fares. But restricting bookings beyond 30 days will certainly be counter-productive in terms of generating revenues to meet costs. This would hold true for any airline, not just SpiceJet."
He added the airline will discuss the issue with DGCA.
On Friday, the DGCA withdrew 186 airline slots of SpiceJet and directed the airline to pay refunds without delay. It also directed SpiceJet to pay salaries by next week besides restricting the airline's sale period.
The measures were initiated after the airline said it would only operate 22-24 Boeing 737s till next summer. It was operating 35 Boeing planes till two months ago.