In what can be called a comeback strategy, the troubled SpiceJet, which has been undergoing a restructuring and revival exercise, on Wednesday announced its first super sale offer for 2015. Five lakh seats will be up for grabs starting Rs 1,499 (one-way advance booking, all-inclusive).
In 2014, similar offers had helped the airline’s revenue, driving significant passenger and market growth. The latest offer is open for bookings made from January 28 to January 30, and is for travel between February 15 and June 30, 2015. It is applicable for all direct flights on SpiceJet’s domestic network. Availability is on first-come, first served basis, and seats per flight are limited, SpiceJet said in statement.
Vinay Gupta, founder and chief executive officer, TripFactory.com, said, “This sale offer coming from SpiceJet after a gap of few months shows the airline is back on track. The travel period offered under the sale covers summer vacation and is a good opportunity for people to plan their holidays in advance at very exciting rates. Such stimulating offers are not only good for airlines as they are able to fill more seats even in the lean season, but also for passengers and the entire aviation and allied sectors, like tourism and hospitality.”
With Chennai-based Kalanithi Maran and his Kal Airways deciding to exit the promoters’ slot, the airline’s co-founder Ajay Singh has stepped into bail out the ailing airline in partnership with JP Morgan. Recently, the aviation ministry had given its approval to the airline’s revival plan.
Sanjiv Kapoor, chief operating officer, SpiceJet, said, “The return of our super sale in 2015 at the onset of the 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.”
He said that these carefully designed offers helped increase the airline’s revenues in 2014, driving significant passenger and market growth. Kapoor said: “Such promotions are an integral part of the LCC pricing model. Unlike a bar of soap that can be put back on the shelf and sold later, an airline seat is the ultimate perishable commodity. Once the aircraft takes off, that empty seat’s revenue is lost forever. And it is always better to sell such seats in advance to those willing to plan and book early in exchange for lower fares, rather than discount them at the last minute when passengers tend to be the least price-sensitive.”