In a move to make air travel more accessible and predictable, the government has launched a fixed-fare scheme for Alliance Air, the only state-owned fixed-wing airline. The "Fare Se Fursat" scheme, inaugurated on Monday, aims to alleviate the stress of fluctuating airfares for passengers. Civil Aviation Minister Rammohan Naidu Kinjarapu, along with Civil Aviation Secretary Samir Kumar Sinha, Alliance Air Chairman Amit Kumar, and airline CEO Rajarshi Sen, were present at the launch.
Under this initiative, Alliance Air will offer a single, fixed fare that remains constant regardless of the booking date, even on the day of departure. This pilot program will run from October 13 to December 31, 2025, across select routes, allowing the airline to evaluate its operational feasibility and passenger response.
The Indian aviation market largely operates on a dynamic pricing model, where ticket prices change in real-time based on demand, seasonality, and competition. While this model can be effective for revenue management, it often leads to passenger frustration due to unpredictable last-minute fares. "Fare Se Fursat" seeks to address this issue by introducing transparency and stability in pricing.
Minister Naidu emphasized the scheme's alignment with the UDAN (Ude Desh ka Aam Nagrik) scheme, which aims to connect Tier-2 and Tier-3 cities to the national aviation network. He described Alliance Air as the backbone of the UDAN scheme and lauded the "One Route, One Fare" concept as a bold step prioritizing public service over profitability. He stated that Alliance Air is carrying forward Prime Minister Narendra Modi's vision of democratizing aviation and making it affordable for the middle class.
The Minister also highlighted broader efforts to make Indian aviation more passenger-centric. This includes the launch of Udan Yatri Cafes offering affordable snacks and beverages at airports. Naidu believes that the fixed-fare scheme removes uncertainty and ensures cost predictability, especially for last-minute travelers.
Alliance Air, awaiting divestment, has experienced a decrease in passenger numbers and market share. According to August data from the Directorate General of Civil Aviation (DGCA), the airline flew 37,000 passengers, holding a 0.3% share of the domestic market. The airline's load factor was 68.7%, and its on-time performance (OTP) was 55% during August 2025. As of October 11, 2025, Alliance Air had 8 aircraft in operation and 12 grounded, out of a total fleet of 20.
The "Fare Se Fursat" scheme is expected to benefit passengers traveling to and from Tier-2 and Tier-3 cities the most. Alliance Air primarily operates short and medium-route flights connecting these cities under the UDAN scheme. The airline's fleet mainly consists of ATR 72-600 turboprop aircraft, suitable for smaller airports, along with some ATR 42-600 and one Dornier 228 aircraft.
As the pilot phase progresses, its results could potentially shape future fare policies for regional routes, setting a new standard in the Indian aviation sector. The scheme aims to encourage more passengers, particularly from smaller towns, to choose air travel, supporting the UDAN vision of making air travel accessible and affordable for every Indian.
