All airlines have increased the fares for first class and business class travellers to the United States, the United Kingdom and Europe by 30 per cent with effect from on Friday.
"These fares have not been revised for the past three years because of global recession and cut in corporate travel. All airlines across the board have increased the fares in these two classes by 30 per cent," an Air-India spokesman said in New Delhi on Friday.
The fares to Canada are to be revised with effect from September 13.
Fares in the economy class have been untouched as they go up by 3-5 per cent every year, the spokesman added.
The spokesman said fares have been increased as additional features like 'sleeperettes' and 'slumberettes' have been introduced in these two classes in the Boeing 747-400s.
Also, Air-India has a 'companion free' offer in both business and first classes.
According to a travel agent, fares from Mumbai to New York would be Rs 234,000 (business) and Rs 402,000 (first), to the United Kingdom fares would be Rs 180,000 (business) and Rs 276,000 (first), while to Canada the fares would be Rs 185,000 (business) and Rs 376,000 (first), respectively.
Travel agents were taken by surprise by the sudden rise in the fares initiated by Air-India.
Foreign airlines have, however, welcomed the move.
"We have been waiting for quite some time for the fares in the premium segment to go up," a spokesman for a foreign airline said.
The spokesman said these were published IATA (International Air Transport Association) fares, but actual fares would, however, be dictated by the market.
He said: "This is a cumulative increase as fares had remained untouched for the past three years."