Air-India, the country's official carrier, has launched a fare war against Singapore Airlines.

It has reduced its airfare in the Singapore, Kuala Lumpur and Bangkok sectors by over Rs 8,000. A-I had earlier reduced its airfare to the US sectors by over Rs 2.000.

Air-India: Of divestment and other issues

A-I's fare reduction strategy comes in response to the threat it faces from SIA, which introduced its maiden flight from Ahmedabad to Singapore on Wednesday, the first direct flight connecting Ahmedabad and Singapore.

"We have lowered our airfare in the Singapore, Bangkok and Kuala Lumpur sectors. We have kept our fares at least Rs 2,000 lower than SIA's fares. We also have exclusive offers for passengers - they can travel to all the three destinations (Singapore, Bangkok and Kuala Lumpur) for Rs 19,000 only. Last week we reduced our fare by over Rs 2,000 in the US sector," a senior official of A-I said on condition of anonymity.

A-I is also in talks with its alliance partner Qantas and Air New Zealand to offers lower fares for A-I passengers who travel to Australia and New Zealand. A-I's current one-way fare to Perth from Ahmedabad is Rs 30,000 and the return airfare is Rs 40,500.

Similarly, the one-way fare to Sydney is Rs 31,500 while the return air fare is Rs 43,000. For Auckland, travelling by A-I costs Rs 29,600 one way and Rs 48,400 two way.

With A-I's new airfare passengers can travel to Singapore and Kuala Lumpur for a return airfare of Rs 14,500 only and to Bangkok for Rs 17,000. SAI's fares are Rs 17,000 (return fare) and Rs 11,000 (one way).

Earlier Air-India's return airfare for Singapore was Rs 23,045, Bangkok was Rs 19,690 and Kuala Lumpur Rs 23,045.

Last week, A-I reduced the fare for the Los Angles and San Francisco sector by over Rs 2,000. Now, the airfare to Los Angeles and San Francisco is Rs 27,000 (one way). The return fare to Los Angeles is now Rs 47,000.