DGCA asks SpiceJet to immediately stop Re 1 ticket offer Tuesday April 01,2014

Terming SpiceJet's offer of rupee one fare across its domestic network as "predatory" and a "malpractice", aviation regulator DGCA on Tuesday April 01,2014 came down heavily on the no-frill carrier and asked it to stop such pricing immediately. Hours after SpiceJet offered fares as low as rupee one valid for domestic travel till next year, the Directorate General of Civil Aviation (DGCA) shot off a strongly-worded directive to the airline asking it to stop the three-day offer "immediately".

Such pricing was "not only predatory", but it amounted to "malpractice" under Rule 135 of the Aircraft Rules relating to air tariff

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.

Rule 135, under which the directive was issued, says: "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.