Spicejet under MRTPC scanner for unfair trade practices

NEW DELHI: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has initiated two cases of unfair trade practice against low-cost carrier Spicejet.

While one case pertain to the carrier's refusal to refund amount of air tickets on cancellation, another is for not adopting a fair method for booking seats at a special price of Rs 99 on its first anniversary.

The notices of enquiry have been issued on the basis of preliminary investigation reports submitted by MRTPC's investigative arm Director General of Investigation and Registration.

Acting on a complaint by a passenger, DGIR in an investigation found that Spicejet refused to refund amount of air ticket on cancellation as it had adopted a practice not to refund the booking amount.

The terms of carriage of the company provided that booking amount was non-refundable. However, if the ticket is canceled two hours prior to departure the balance amount subject to cancellation fee is retained in a credit shell up to one year which can be used as payment for future travel.

On the other hand, cancellation within two hours departure or failure to check in for its flight at least 30 minutes before the scheduled departure will result in the fare being forfeited, it said.

In the second case, DGIR said Spicejet did not adopt fair method for booking tickets while providing its anniversary offer of Rs 99 a seat through internet.

In its investigation on the case relating to Spicejet's special anniversary offer, DGIR noticed that there was an overwhelming response and traffic for ticket booking increased manifold on its website, which made it very slow. This resulted in failure to complete booking by Internet users.

Though the users were calling the reservation centre for booking through telephone also, the airline did not give correct information to the complainant that the booking tickets had started over telephone also, DGIR said.

It also said Spicejet failed to display the information on its website that prospective customers could book tickets over telephone because of disruption of Internet booking.

The services of the respondent company have been found to be deficient in this respect, DGIR said, while requesting the Commission to institute an inquiry against the carrier.

Accepting DGIR's two reports, the Commission instituted an enquiry in both the cases and issued notices to Spicejet.

The airline has been given time till January to respond to the notices of enquiry.