Government Introduces Fixed Fare Scheme for Alliance Air

The Union government has introduced a fixed fare scheme for its only state-owned airline, Alliance Air, under the name “Fare Se Fursat.” Announced by Union Aviation Minister Rammohan Naidu Kinjarapu, the pilot program will run from October 13 to December 31, 2025. 

The scheme will apply to select routes and aims to make air travel more predictable and accessible for passengers.

The Need for a Fixed Fare Model

Alliance Air, which plays a vital role in India’s Ude Desh ka Aam Nagrik (UDAN) regional connectivity scheme, has been struggling financially amid falling passenger numbers and market share. From carrying 91,000 passengers in January 2025, its traffic dropped to 37,000 by August. The fixed fare initiative seeks to counter this decline by bringing transparency to ticket pricing and building passenger trust in smaller city routes.

“Fare Se Fursat”: Transparency Over Profitability

Unlike most Indian airlines that follow dynamic pricing, where fares change based on demand, Alliance Air’s scheme offers stability with “one route, one fare.” Minister Naidu hailed the initiative as a bold step prioritising public service over profit, calling it “naye Bharat ki udaan.”

Conclusion

The “Fare Se Fursat” scheme represents a fresh attempt to strengthen regional aviation and make air travel predictable for tier-2 and tier-3 city passengers. Its success during the pilot phase could pave the way for wider implementation across India’s aviation network.

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