No more costly last-minute tickets! Alliance Air to offer fixed airfares until Dec 31

Civil Aviation Minister Rammohan Naidu Kinjarapu on Monday launched a new airfare scheme to give passengers freedom from the unpredictability of fluctuating ticket prices and make flying more affordable.

India’s aviation market largely follows a dynamic pricing model, where fares fluctuate based on demand and seasonality. While the model helps airlines optimise revenue, it often causes passenger frustration due to unpredictable last-minute fares, according to the release.

Under the scheme, the government-owned Alliance Air will offer a single, fixed fare that remains unchanged irrespective of the booking date, including on the day of departure.

The scheme will be rolled out on a pilot basis across select routes from October 13 to December 31, 2025, to assess its operational feasibility and passenger response.

Speaking at the launch event, Naidu said the ‘Fare Se Fursat’ scheme is in line with the government’s UDAN initiative to make aviation accessible and affordable for the middle class and emerging flyers.

“The ‘Fare Se Fursat’ scheme perfectly aligns with the core principles of the UDAN scheme. Alliance Air is carrying forward Prime Minister Narendra Modi’s vision of democratising aviation and making it affordable for the middle class, lower-middle class and neo-middle class,” the minister said.

He stressed that the static fare model eliminates uncertainty and stress caused by dynamic pricing and ensures cost predictability even for last-minute bookings.

Alliance Air, a subsidiary of AI Asset Holdings Ltd, operates regional routes under the government’s UDAN scheme, connecting smaller towns to the national air network.

According to the August DGCA monthly traffic numbers, Alliance Air flew a total of 37,000 passengers in the reporting month and held a 0.3 per cent share of the 1.29 crore passengers flown by all domestic carriers that month.

The airline had clocked a load factor of 68.7 per cent while its OTP was the lowest among the five airlines - IndiGo, Akasa, Air India Group and SpiceJet--at 55 per cent during August 2025, as per DGCA data.

It had eight aircraft in operations and 12 on the ground of the total 20 in the fleet, as on October 11, as per the aircraft fleet tracking website, Planespotter.

Naidu said the government’s focus is on making aviation “more people-oriented”.

“We have launched Udan Yatri Cafes offering tea for ₹10, coffee for ₹20 and snacks for ₹20 at airports. It is making air travel more dignified and affordable. Now we are taking a step further and addressing the major concern of passengers, which is the airfare,” he said.

Describing Alliance Air as the “backbone” of the government’s regional connectivity scheme, the minister lauded the airline’s “One Route, One Fare” concept as a bold step that prioritises public service over profitability.

The launch event was attended by Civil Aviation Secretary Samir Kumar Sinha, Alliance Air Chairman Amit Kumar, and CEO Rajarshi Sen.