Air-India has decided to offer holiday packages to its inbound passengers. As a start, it will offer packages to customers flying in from the Gulf to Kerala and Goa. The move is expected to bolster the airline's bottomline by opening up new revenue streams.

A senior A-I executive said: "These schemes will not only ensure utilisation of existing capacity but also contribute towards enhancing the size of the cake." He, however, refused to comment on the package prices.

"We will initially offer packages to passengers from the Gulf. The scheme would then be extended to passengers from other parts of the globe. We will also offer holiday packages in other destinations in India," the executive added.

The package will include charges for travel, hotel accommodation, food, sight-seeing and will be valid till September 15.

According to the airline, the move is also aimed at attracting passengers in the lean season. The national carrier has tied up with all categories of hotels (three star, four star and deluxe hotels) and tour operators.

A-I also announced increased frequency of flights to the Middle East, including Dubai, Muscat, Jeddah and Riyad. It will also start a fourth weekly flight to Newark from April 1.

Meanwhile, a senior executive of the airline said the hike in fuel prices will not impact the airline to a great extent in view of the increase in load factors in the last two months.

The withdrawal of capacities by major international airlines is also expected to be a blessing for the country's national carrier.