Joining the discount offer bandwagon, Tata's full-service airline, Vistara, has announced to offer a free ticket on every purchase of business class ticket.

"Travel our business class between 12th August to 30th September, 2015 and get a complimentary premium economy ticket," Vistara said.

The carrier will give vouchers to passengers on board, using which they can travel premium economy class on its flights to any destination of their choice during the offer period, NDTV Profit reported.

Earlier this week, Jet Airways and Air Costa announced discount offers to attract passengers, even as competition intensifies in the domestic aviation sector.

While the Vijayawada-based Air Costa has rolled out a discount of Rs.609 per ticket, Jet Airways has announced a 30% reduction in fares for both international and domestic travel.

Jet Airways, the airline promoted by Naresh Goyal, saw 6 million international passengers travelling on its flights during 2014-15, making it the largest carrier in terms of international traffic from India, according to aviation consulting firm Capa India.

Vistara, a joint venture between Tata Sons and Singapore Airlines, is yet to make an impact on the Indian aviation space.

Cheaper crude oil prices have enabled domestic aviation companies to roll out aggressive discounts for passengers. Overall, there has been a 40% drop in jet fuel prices from a high of about Rs.80,000/kl last year.

In the latest cut, the aviation turbine fuel price (ATF) has been reduced by 9.5%, or Rs.4,860, to Rs.46,407/kl.