Air travellers have got more reasons to cheer the New Year as leading airlines have decided to reduce fares.

In a major decision, Air India on Tuesday slashed its basic domestic fares by 35 per cent to 82 per cent.

The country's largest private airline Jet Airways [Get Quote] has reduced its basic fares on economy class tickets by up to 40 per cent on all its domestic sectors.

As a result of the reduction, a Mumbai-Delhi economy class basic fare will now be Rs 2,000, while a Mumbai-Kolkata basic fare will be Rs 4,065, according to a company statement.

Low-cost carrier SpiceJet too has announced cutting the fares. However, it did not specify the quantum of reduction or the timing.

The decision of the two airlines closely follow Kingfisher Airways announcement yesterday which said it would slash fares beginning from the new year.

Other airlines, including IndiGo and GoAir, could not be contacted immediately.

Earlier this month, all major airlines, including state-owned Air India, Kingfisher-Kingfisher Red, Jet-JetLite and SpiceJet had reduced fule surcharge by up to Rs 400 on all domestic sectors.

Airlines have been forced to reduce airfares with mounting pressure from all quarters including the government.

There have been successive rounds of reduction in jet fuel prices since they touched the all time high in August of Rs 71,028.26 per kilolitre in Delhi.