New Delhi: A day after three major domestic carriers raised their fares by ten per cent, their low cost competitor, Air Deccan, undercut them by announcing a 20 per cent fare reduction on its metro routes.

Claiming that the Airline was offering fares upto 55 per cent lower than other carriers, Air Deccan Chief Captain G R Gopinath said, "Incremental revenue from very high passenger traffic will offset the cost of increase in the price of aviation turbine fuel."

While the last moment Mumbai-Delhi fare will now be Rs 3,400 in place of Rs 4,400, for Bangalore-Delhi it will be Rs 5,200 against Rs 6,600.

The Bangalore-Mumbai fare now will be Rs 2,600 (against Rs 3,500), Delhi-Hyderabad Rs 4,000 (Rs.5,700), Delhi-Chennai Rs 4,500 (Rs.6,600) and Delhi-Guwahati Rs 4,200 (Rs.5,600).