Air India-IA slashes UAE-Delhi, Mumbai fares by 20 per cent

Dubai: Erstwhile Indian Airlines, now Air India-IA, has adopted a contrarian pricing policy for its MidEast routes by reducing fares to most Indian destinations. The aggressive move comes even as major carriers operating in the sector have hiked their fares.

IA has cut fares on the UAE- Delhi/Mumbai routes by 20 per cent. The one-way fare has been cut from Dh500 (about Rs5,500) to Dh400 (Rs4,400), while the fuel surcharge remains same. The fuel surcharge was hiked to Dh390 from Dh350 in May, which is the peak summer season.

The new fares came into effect from 14 July.

According to IA regional officers, the airline had introduced special fares for Delhi and Mumbai last Monday. They said fare reduction was aimed at generating more volumes since the India-UAE sector was seeing over-deployment of capacity. They expect the move will help them maximise revenues.

Merged partners Indian Airlines and Air India operate 19 flights a day from Dubai and Sharjah to Indian destinations. With the reduced fares, a one-way ticket from Dubai to a destination in Kerala would cost Dh790, including taxes. This is down from Dh900 previously.

Passengers flying from Sharjah will also benefit, as the Sharjah-Mumbai fare has come down to Dh690 from Dh840, while the Sharjah-New Delhi fare has come down to Dh740 from Dh1,070.