The offer would be valid on the carrier's domestic flights, including domestic leg of the international flights.
"Under this offer, available from November 3-7, Air India flyers get to book and travel at low fares starting at Rs 1,777 (all inclusive) on its domestic network," the airline said in a statement.
It would be applicable for travel period starting from January 15 to April 15, 2016.
"Diwali Dhamaka is the latest promotional offer by Air India in the recent string of passenger-friendly schemes," the statement said.