SpiceJet is offering passengers the chance to pay for their tickets in installments instead of upfront. Now, passengers can choose to pay for their tickets over three, six, nine, or 12 months without going through a bank. Let’s find out more.
Easier way to pay
SpiceJet has introduced a new option for travelers to pay. While Easy Monthly Installments (EMIs) have long been available, this required passengers to have a credit card (or some debit cards) issued by a bank and come with several additional fees and overall interest. Without specific offers, this meant many could not access EMIs easily. To combat this, SpiceJet is offering a bank-free installment system. Backed by Walnut 369 (owned by Razorpay and Capital Float), passengers can now pay EMIs with their UPI IDs instead of card-based payments. This will make EMIs accessible to millions more, considering the vast number of users with access to UPI payment apps (over 100 million).
Passengers need to have their PAN Cards, Aaadhar number, and UPI IDs on hand to complete the transactions. This allows for instant credit approval and a recurring payment to your UPI ID to be created for the period of payments.
However, it is important to note that only the three-month EMI option is interest-free, which means you will be paying more for smaller payments every month. Overall, SpiceJet’s offering gives more people the chance to access installments without the hassle of credit cards.
Looking for a boost
The new feature comes as SpiceJet tries to find its feet in the new domestic market. Since spring, the airline has seen its market share falling rapidly to others. Once the undisputed second-place in the Indian market, SpiceJet has most recently fallen to number four in the domestic market share. Today, both Air India and Vistara are carrying more passengers every month than the low-cost operator.
However, don’t count SpiceJet out just yet. The airline is yet to deploy its fleet of 737 MAX aircraft, which will give it a big capacity boost and help capture more travelers. However, there is currently no date on the return to service on the MAX after the original delay.
One sign of SpiceJet’s ongoing woes in its filings for the winter 2021 season (November-March). The airline has seen its weekly flights drop by 25% when looking in reference to 2019, representing the carrier’s drop in operational aircraft. As the fleet continues to shrink, the airline could be stuck behind for a while.
All of this occurs while the domestic market has made a significant recovery in recent months. Passenger traffic has reached 75% of pre-pandemic levels, while flights for the winter are only down 4% after the government lifted caps. For now, airlines are preparing for a few months of considerable recovery, and SpiceJet is hoping to see some of its own.
Source: Civil Aviation Authority-Qatar