Fair trade regulator MRTPC has initiated action against Kingfisher Airlines-owned low-cost carrier Simplifly Deccan for lack of transparency in offering zero basic fare.

Admitting an investigation report by its investigative unit DGIR, the Monopolies and Restrictive Trade Practices has issued 'notice of enquiry' against the carrier and directed it to file its reply.

In its report, the director general of investigation and registration found the carrier did not 'live upto its promise of zero basic fare' and recommended to take action against it for lack of transparency.

"Number of tickets were not disclosed in their advertisements. The company has also not informed its customers the date from which non-promotional regular fares were to be charged," the report stated.

The matter relates to a promotional scheme by Deccan, whose name was changed to Simplifly Deccan after acquisition by Vijay Mallya, offering tickets in various sectors at zero basic fare, exclusive of all taxes between July 1-October 27, 2007.

As per the newspaper advertisement titled 'raining free ticket this summer' booking was to end on the midnight of May 20, 2007. The tickets were, however, exhausted 'well before the stipulated time'.

The report said at about the same time, the airlines was also selling non-promotional regular tickets at their basic fare band of Rs 24 to Rs 1,674.

In addition to this, the DGIR also pointed out the company was not providing any refund to its customers in case of cancellations. The tickets could be rescheduled with payment of differential air fare.

Also, it did not provide the option of fresh booking against the cancelled tickets under the scheme, the DGIR report added.

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