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Indian Airlines reduces fares on some busy routes

State-run Indian Airlines, which flies mostly on domestic routes, said on Tuesday it had cut fares on a few busy routes by between eight and 16 per cent because of slack demand.

The airline will offer lower fares on the busy Bombay-Bangalore, Bombay-Madras, Bombay-Goa, Bombay-Calcutta and Ahmedabad-Bangalore routes.

The cuts are the latest in a series of moves by the airline to grab market share since it lost its market leader position to private airlines, Jet Airways and Air Sahara, last year.

Indian Airlines introduced a flexible fares system last month with higher fares during peak hours and lower prices during non-peak periods.

India's domestic air passenger market experienced a growth of nine percent in 2000, but the market has grown by only 1-2 per cent since April this year, according to the regulatory civil aviation authority.

The authority has attributed the slow growth to the economic slowdown gripping the country.

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