A-I plans more rate cut

Air-India is planning to reduce fares in the Singapore, Kuala Lumpur and Bangkok sectors by the end of this week.

The state carrier had recently reduced fares in the Los Angeles and San Francisco sectors by over Rs 2,000. The one-way fare to both the US cities is Rs 27,000. A return air ticket to Los Angles will now cost Rs 47,000.

"We have already lowered our fares to Los Angles and San Fransisco, effective from Tuesday, and are working on lowering our fare to Singapore, Kuala Lumpur and Bangkok," an Air-India official here said.

This comes at a time when Singapore Airlines is set to start its maiden Ahmedabad-Singapore direct flight from Ahmedabad on Wednesday with much cheaper fares.

From Singapore, passengers can fly to the US and Australia. As a result, Air-India could lose a chunk of its traffic to the US, among the most profitable sectors for the airline.

"Most of the frequent flyers to the US are from Gujarat and Singapore Airlines' plan is not only to introduce direct flights from Ahmedabad to Singapore but to hijack the potential customers travelling to the US, Australia and other sectors. Singapore Airlines will provide a through check in facility at Ahmedabad airport for passengers travelling to the US and other international destinations, apart from Singapore," the Air-India official said.

Singapore Airlines has kept its departure timing from Ahmedabad at 6 am, so that the aircraft reaches Singapore by 2 pm and passengers can get a connecting flight to the US and other sectors till 6 pm.

Air-India is in talks with its alliance partner Quantas and Air New Zealand to offer passengers travelling to Australia and New Zealand a lower fare.