The Hindu Business Line : Air India cuts domestic fares on 20 sectors

New Delhi, Dec. 30 Domestic flying has become cheaper. The state owned Air India (domestic) on Tuesday dropped its basic minimum fares by an average of 52 per cent on 20 sectors that include Delhi-Chennai, Delhi-Hyderabad, Delhi-Bangalore, Bangalore-Chennai, Chennai-Hyderabad and Bangalore-Hyderabad.

At the same time, Jet Airways’ wholly-owned economy subsidiary, JetLite, announced the introduction of special fares which are up to 40 per cent lower than what was being charged earlier. These special fares will be available on all domestic destinations to which the airline flies.

Both the airlines, however, have not reduced the various surcharges (including fuel, congestion and passenger service fee) currently levied. On Air India flights operating on both Chennai-Delhi and Bangalore-Delhi sectors, a passenger will pay a minimum fare of Rs 5,275, down from Rs 6,675 being paid earlier. Similarly, on the Hyderabad-Delhi sector, the basic minimum fare starts at Rs 4,975, down from Rs 6,275 earlier.

The total minimum fare on the Delhi-Mumbai sector now starts at Rs 4,650 against the earlier starting fare of Rs 6,275.

On short haul sectors, the extent of fare reduction announced by AI is larger. Between Bangalore and Chennai, the basic minimum fare starts at Rs 2,325 as against the earlier basic minimum fare of Rs 3,225. On the Bangalore-Hyderabad sector, the minimum basic fare starts at Rs 2,375 while earlier, the basic minimum fare was set at Rs 3,225. Similarly, on JetLite, the minimum fare on the Delhi-Mumbai sector begins at Rs 3,875 while the Delhi-Hyderabad fare begins at Rs 4,124.

The industry is lowering fares as the global price of aviation turbine fuel (ATF) has been declining over the past few months.

Meanwhile, Air India is to introduce companion-free tickets on most domestic sectors for spouses in business class from January 7, 2009. Such passengers will only have to pay the applicable Government taxes.