Airlines in Asia have seen demand for air travel fall amid the slowing economy.

Some, like India's Jet Airways, are willing to cut their fares in order to stimulate demand in the longer term.

Fewer Singaporeans have been travelling to India, with December seeing a 30 per cent on-month drop.

Assistant director of India Tourism, Neela Lad, said: "It has been affected by economic downturn and the Mumbai attacks. It was really badly affected. But it's already starting to show positive response. We've already got figures going up. In December, figures dipped down, but from January it has picked up."

Jet Airways is planning to cut fares to attract more passengers. While lower ticket prices mean thinner margins in the short term, Jet Airways believes this will have benefits in the long run.

Regional vice-president for Southeast Asia and Australia, Jet Airways, Gerry Oh, said: "What's important for the industry is to keep demand up. We will take knocks here and there in terms of margins but in the longer term, that's what we should be more worried about. We must sustain demand for the longer term."

The carrier will also be offering deals on trips to India at an upcoming holiday fair, NATAS.

Going forward, Jet Airways says it is also looking to develop special niche interest tours with the India Tourism Board. And this includes eco-tourism and rural tourism.

It is also keen to boost passenger numbers on flights in and out of aviation hubs like Singapore. And one way to do that is to sell the country as an attractive transit location for passengers in other countries.

Jet Airways has launched an initiative called the Singapore Spree package, where transit passengers will get discounts on tours and other goodies during their stopovers in Singapore.

The airline also hopes Singapore will develop more of such programmes on its own.

Mr Oh said: "To develop a stopover programme on our own takes time and effort and I wish that there will be a national programme where airlines like us can plug in and rejuvenate and provide the stimuli."

Jet Airways operates 21 weekly flights from Singapore, including daily flights to Mumbai, Delhi and Chennai.