Hyderabad: SpiceJet's promoters Sun Group admitted on Wednesday that the deep discounting in the first quarter of calendar year 2013 was a mistake, but at the same time it defended the low-cost carrier's frequent discounting in 2014.
"I think we made a mistake by offering all-inclusive tickets at Rs 2,013 in the first quarter of calendar year 2013," said SL Narayanan, Sun Group's chief financial officer. "The ticket price of Rs 2,013 was inclusive of everything, taxes, airport charges etc, so the net realisations were very low."
"This time we are doing things a lot more intelligently," he added. "We are doing it some select sectors and on some seats which would have otherwise gone empty. We usually don't do it on flights during the peak hour, but if a seat is going empty during a flight mid-day, then it has to be monetized." The discounts from last year ultimately cost Neil Raymond Mills his job as the chief executive officer.
Read news in full 12/03/14 Debabrata Das/Economic Times
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