Air-India has slashed economy class fares to London by 23.5 per cent, to Frankfurt by 36 per cent and to the US by 13.3 per cent for the October-December season.
The Delhi-London or Mumbai-London return fare will come down to Rs 26,000 from Rs 34,000.
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The offer will be open till November for London and December for Frankfurt and New York.
British Airways has also cut first-class fares from Chennai by 50 per cent, business class fares from Chennai and Kolkata by 30 per cent and economy class fares from Delhi, Mumbai and Chennai by 25 per cent.
Air-India is not touching its business and first-class fares, but will continue the free companion offer on these classes.
The national flag carrier has also started a scheme for senior citizens on all sectors, which will be lower than the excursion fares.
On weekdays, return fares to London are Rs 25,000, while those to New York are Rs 41,000.
Other international carriers such as Air France and Lufthansa were not planning any special fares for the forthcoming festive season, airline executives said.
"The special fares are primarily to increase outbound traffic during the lean season. Since this phenomenon is restricted to West-bound traffic, we are not touching the Gulf and Southeast Asia routes as of now," a senior Air-India executive said.
Air-India officials said the seat load factor during September-December usually dipped to 45-50 per cent. Both inbound and outbound traffic improves after December.