The repeated flash sales announced by Indian domestic carriers have caught the aviation ministry’s notice. The ministry, sources said, has decided to look into whether the flash sales amount to “predatory pricing” by certain airlines.
Sources said either the Directorate General of Civil Aviation (DGCA) will be asked to look into the issue or the ministry will examine the matter.
“Whether any airline is selling tickets below cost needs to be known. If that is so, it will hurt the business of others,” said an aviation ministry official. All Indian airlines, except budget carrier IndiGo, are expected to post a loss of over `2,000 crore in the September quarter.
Last week, Air Passengers Association of India had complained to the DGCA alleging that discount schemes offered by airlines were a fraud.
“While the government should not interfere with how airlines run their businesses, there should be some transparency in the system,” said Rajji Rai, chairman, Swift Travel International Ltd.