New Delhi: Indian Airlines (IA) on July 6 announced a reduced air tariff covering most of the high-density routes, matching the drastic slash announced by private Jet Airways on July 5.

Announcing the APEX fare scheme (advance purchase fare) for August to October, IA spokesman said that it was aimed at stimulating the market by creating a new market segment.

"The fares have been kept at a level which would attract the passengers who are currently not travelling by air but by surface mode of transport," he said.

In a market scenario of depressed demand and over capacity, these fares were expected to expand the market size and generate incremental revenue for the airline, he said, adding that while there might be a dilution of average yield, improved seat factor and incremental revenue would improve the route economics.

However, the spokesman said that the passengers would have to buy confirmed tickets against these reduced fares at least 21 days before the date of travel.

PTI