Indian cuts fares by 20-40%

State-run carrier Indian today announced 20-40 per cent cheaper fares for limited seats on 146 sectors.

The move comes at the beginning of a lean traffic season with increased competition from private carriers. The reduced fares are valid till April 30.

On the Delhi-Mumbai sector, an economy class ticket will cost Rs 2,300 compared with Rs 3,965, its existing lowest fare "� Easy Fares.

On the Delhi-Hyderabad sector, the new fare will be Rs 2,300 for an economy class ticket against Rs 3,965. For the Delhi-Kolkata sector, the new low fare will be Rs 2,300 against the earlier Rs 4,515.

According to travel industry estimates, this move by the carrier will result in an increased traffic as a result of passengers from other airlines and railways moving to Indian.

Indian's competitors said that they are evaluating the situation and will take a call in the next few days.

"We have been able to meet pricing challenges by other airlines. This is the beginning of the lean season and low fares. We will come out with our strategy soon," said a senior executive with a private airline.

Last year, the lean season of February-April saw some of the operators cutting fares by as much as 50 per cent on certain sectors.