NEW DELHI: The rail budget may not have made it cheaper to travel, but low cost carrier SpiceJet on Tuesday offered 10 lakh tickets at a base fare of Rs 999. Termed as “lower than train fares,” these tickets will have to be bought up to Thursday for domestic travel between January 6 and October 24, 2015. The latest fares starting Rs 999, however, do not include statutory taxes.
Other budget airlines may follow latest discount offer from SpiceJet, which has been taking recourse to all possible means to raise funds for meeting working capital requirements. The airline posted its highest ever annual loss of Rs 1,003.2 crore in the financial year 2013-14, up five times from Rs 191 crore in the previous fiscal. The LCC’s auditor had said FY 2013-14’s loss along with SpiceJet’s total liabilities exceeding its assets by Rs 1,019.5 crore on March 31, 2014 and “indicate the existence of a material uncertainty regarding the company’s ability to continue as a going concern”.
SpiceJet has been announcing flash sales regularly now to mop up funds, with the latest round being the third discount in a month. Now the LCC announces sales for flying in peak travel quarters of April-June and October-December. Last month, it had come up with all-inclusive fares of Rs 1,999 for travel in winter peak.