In just a couple of days since its maiden flight, Vistara, India's latest full-service airline, has become a game-changer.

While its competitive pricing is sure to impact other full service airlines, even low cost carriers are staring at a potential fare war.

The aviation joint venture between Tata Sons and Singapore Airlines is offering fares cheaper than that of Jet Airways and Air India and even low cost carrier Indigo Airlines, according to a Business Standard report.

"We were expecting Vistara would not play the fare game. But now we have decided to readjust our fares downwards," the newspaper quoted a senior budget airline executive who did not wish to be named, as saying. 

The airline industry normally follows trends set by any one player, and the entry of a new player triggers a price war.

Vistara CEO

Coincidentally, the lean season has also started with January, prompting carriers to offer steep discounts. 

On Monday, national carrier Air India cut its domestic fares by almost 50%. Air India's special New Year discounted fares start at 1,557 for tickets booked till 18 January for travel between 16 January and 30 April. The sale is offered on select routes only.

Fares for Air India Delhi-Mumbai flight, normally priced at 6,000-8,000, are currently available for 2,958. Delhi-Bangalore flights are priced at 1,800, read LiveMint.

The four-month lean season normally witnesses low occupany rates that ease with the commencement of the summer vacation starting from May.

Air India