SpiceJet gets 1,00,000 bookings for special offer tickets priced Rs 499

Loss-making, low-cost airline SpiceJet rolled out yet another cheap fare offer called Early Bird on Monday with tickets priced as low as Rs 499 on its domestic network making it the fifth discount bonanza for fliers in the last two months. Within hours, one lakh tickets for the three-day offer were sold.

The way it was lapped up by customers on Monday indicates a record of sort, an airline source told news agency PTI. "By 4 pm, tickets sale touched the 1-lakh mark," the source said adding, "it expects to set a new sales record in terms of booking in a single day."

The series of discounted fares has enabled the Kalanithi Maran-promoted airline to increase its market share to the second spot with every fifth flier in the country booked on its flights. But the carrier plunge deeper into the red with a loss of Rs 124.10 crore in April-June quarter. This is the fourth consecutive quarterly loss for the airline. SpiceJet had seen its revenue fall a bit from a year earlier to Rs 1,678.59 crore despite its rising market share.

The latest offer, for travel between January 16 and October 24 next year, is open from Monday to Wednesday. The fare is inclusive of fuel surcharge but all statutory taxes and fees are to be paid by the passenger as applicable on the date of travel.

Ankur Bhatia of Bird Group said, "This has stimulated the aviation market. Though such periodic discounted fares are only two-to-five per cent of the total inventory, this helps airline generate immediate cash for future and also ensures that seats don't go empty. By adopting aggressive discounted fares, SpiceJet also got the first-move advantage and that also helped it mop up cash for working capital as it faced cash flow problem."

FARE BONANZA

September 1
SpiceJet offers fares as low as Rs 499 on its domestic network for travel between January 16 and October 24, 2015.

August 25
SpiceJet offers fares starting from Rs 1,888. The limited period offer was valid on three-day booking till August 28 for travel between September 25 and January 15, 2015.

August 7
SpiceJet offers fares starting at Rs 2,199 for 23 cities. The offer was valid on travel between September 5 and December 15.

August 1
The four-day SpiceJet offers opened for travel between September 1 and December 15. Fares were as low as Rs 1,499 on all its economy class domestic networks.

July 15
SpiceJet rolled out a sale offer with fares starting at Rs 1,699 for a limited period on domestic routes for travel between August 18 and September 30.

THE FINANCIALS

>> SpiceJet posted loss of Rs 124.10 crore in April-June 2014, its fourth straight quarterly loss.

>> Revenue fell from a year earlier to Rs 1,678.59 crore despite increase in market share.

>> Total liabilities exceeded its total assets by Rs ,145.58 crore as on June 30.

>> No provision has been made for interest of Rs 7.5 crore up to 30 June.

>> The Income Tax Department last month began the recovery process of TDS from the airline which it had not passed on to the government.