Discounted seats would have gone unsold: Sun Group

SpiceJet has launched a 'Super Holi Sales' advance booking scheme, offering tickets as low as Rs 1999. This is the fourth such super sale offered by SpiceJet so far this year. A candid Sun Group CFO SL Narayanan says the discounts are being offered on seats that would have perhaps gone unsold. "These are demand stimulation measures," he says.

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The low-cost airline is not reducing its effective revenue per seat kilometer. The inventory that is being put out for sale is highly controlled, he adds. Narayanan explains the routes that are in demand may not be on sale. These discounts are offered only on routes during non-peak hours to optimise the overall efficiency of the fleet. He jokes there is method in this madness afterall.

On FDI in aviation, Narayanan says he is not worried about SpiceJet's inability to close a deal in a hurry. He says the liberalisation in the guidelines is a step in the right direction.