Alliance Air to offer fixed airfares until Dec 31 under new scheme

Mumbai: Government-owned regional carrier Alliance Air on Monday launched a new airfare scheme, 'Fares se Fursat,' aimed at giving passengers freedom from the stress of fluctuating airfares.

Launched by Civil Aviation Minister Rammohan Naidu Kinjarapu, in the presence of Civil Aviation Secretary Samir Kumar Sinha, Alliance Air Chairman Amit Kumar and airline CEO Rajarshi Sen, the latest initiative offers a single, fixed fare that remains constant regardless of the booking date, even on the day of departure, an official said.

The initiative will be implemented on a pilot basis from October 13 -December 31, 2025 across select routes, to evaluate its operational feasibility and passenger response.

India's aviation market largely operates on a dynamic pricing model, where ticket prices vary in real time based on demand, seasonality and competition. While effective for revenue management, it often causes passenger frustration due to unpredictable last-minute fares, according to the release.

"Fare Se Fursat" aims to address this long-standing challenge by introducing transparency and stability in pricing, it said.

"The 'Fare Se Fursat' scheme perfectly aligns with the core principles of the UDAN scheme. Today, Alliance Air is carrying forward Prime Minister Narendra Modi's vision of democratizing aviation and making it affordable for the middle class, lower-middle class and neo-middle class," Naidu said at the launch.

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 ground of the total 20 in the fleet, as on October 11, as per aircraft fleet tracking website, Planespotter.

"The static fare system eliminates uncertainty and stress associated with fluctuating airfares, ensuring predictability of costs, even for last-minute bookings," the minister added.

Naidu said that his focus, since taking charge of the ministry, has been on making aviation more people-oriented.

He said the launch of the Udan Yatri Cafes, which offer tea for Rs 10, coffee for Rs 20 and snacks for Rs 20 at airports, 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," Naidu said.

Describing Alliance Air as the "backbone" of the government's regional air connectivity scheme UDAN, which connects Tier-2/3 cities to the national aviation network, the Minister said, "Alliance Air has taken a bold and exemplary step with the idea of One Route, One Fair. It is truly 'Naye Bharat ki Udaan' thinking beyond profitability and keeping the focus on public service."

The initiative is also expected to encourage first-time flyers from smaller towns to opt for air travel, as per the official release.