AI may cut fares up to 25% on select routes

MUMBAI: Air India may cut passenger fares up to 25% on select routes, matching its full service rival Jet Airways and low-cost Spice Jet, which have already cut fares in certain sectors.

Officials from its holding entity, the National Aviation Company of India (Nacil), met on Thursday to discuss options, according to a senior Air India official. A Nacil spokesperson confirmed that fares would be cut in a day or two.

A Mumbai-Delhi Air India ticket will cost Rs 3,600, including taxes if a cut in the 20-25% range is effected. Currently, the fare is around Rs 4,700, which includes Rs 1,661 as base fare and Rs 3,039 as taxes and service fee. On Wednesday, Jet Airways, JetLite and SpiceJet had reduced fares in a bid to drum up demand.

Jet introduced fares of Rs 6,661 and Rs 5,551 for business class travel, while SpiceJet cut fares by up to 48%.