"All domestic airlines, including Indian Airlines (IA), have lowered fares. This indicates that there was enough scope for fares to come down," Jayakrishnan told The Financial Express in an exclusive interview.

The Government, the aviation secretary said, had in the past favoured a reduction of fares by IA which leads the market in setting fare levels.

However, instead of reducing fares, IA, Jet Airways and Sahara Airlines opted for a successive increase of fares every year.

"Healthy competition has ensured that fares reduce a realistic level. This is a sign that the civil avaition sector is dowing well in India" added Jayakrishnan.

He said that lowering of domestic fares would ensure that more people utilise domestic air travel services leading to a growth of the market.

"Air travelshould not be restricted to just a few well-to-do sections of society. Common people should be able to fly which does not happen in India" said Jayakrishnan.

Sahara Airlines, Jet Airways and IA are involved in an intense round of fare discounting with nearly 25 per cent cuts in trunk route fares. While Sahara Airlines started the fare disounting in the peak summer season, IA and Jet Airways joined in the fare war later with discounts matching or even exceeding those offered by Sahara.

The three domestic airlines are also agggressively wooing passengers with value additions such as free consumer durables and air tickets, with other facilities like city-centre lounges thrown in.

Commenting on the recent Government order which has put all aircraft acquisitions for IA and Air India (AI) on hold till after the elections, Jayaskrishnan said that the airlines would continue with their internal processes on aircraft purchase.

"Of course, no decisions can be taken on which aircraft to purchase. But everythinwill be ready for the new Government" he said, adding that he was confident that the next Governement would continue with the purchase process.

AI has decided to purchase roughly 12 aircraft whereas Indian Airlines (IA) has zeroed-on purchase of 39 aircraft.