Tata Group-owned full-service carrier Air India has reduced by half the discount offered on basic fares to senior citizens and students in the economy class on its flights, according to its website.

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The revised discount on basic fares is effective from September 29.

Tata Group took control of the loss-making Air India from the government on January 27, this year.

"... (under senior citizen and student concession) for tickets issued on/after 29th September 2022, 25 per cent (discount) of basic fare will be applicable on select booking classes in economy cabin," as per the website.

Air India earlier was offering 50 per cent discount on select booking classes in economy cabins of its aircraft to these two categories of travellers, according to the website.

Separately, in a circular dated September 28, the airline said "it has been decided to revise the concessionary fares with effect from 29th September 2022. The changes are applicable for tickets issued on/after 29th September 2022."

According to the circular, the revised concession for senior citizens stands at "25 per cent of basic fare".

The private airline, however, in a statement defended the steep reduction in such concessionary fares, saying, "Even after this adjustment, the discount on base fares for both students and senior citizens will be nearly double when compared to other private airlines."

"Considering the overall market situation and dynamics, we have decided to rationalise our fares in line with the broad industry trend," an Air India spokesperson added in the statement.