Government launches fixed-fare scheme for Alliance Air

NEW DELHI: The Union government on Monday launched a fixed fare scheme on a pilot basis for the only state-owned fixed-wing airline, Alliance Air , which has been struggling to stay in air. Union aviation minister Rammohan Naidu Kinjarapu inaugurated the scheme which will be implemented from October 13 to December 31, 2025, across select routes, to evaluate its operational feasibility and passenger response.

The financially struggling Alliance Air, which is awaiting divestment, has seen its passenger numbers and market share dive from 91,000 domestic flyers in Jan (0.6% domestic market share) to 37,000 (0.3% share) in Aug.

Naidu described Alliance Air as the backbone of govt's regional connectivity scheme UDAN , linking tier-2 and tier-3 cities by air.

"Alliance Air has taken a bold and exemplary step with the idea of one route, one fare. It is truly 'naye Bharat ki udaan', thinking beyond profitability and keeping the focus on public service," Naidu said.

India's aviation market largely operates on a dynamic pricing model , where ticket prices vary in real time based on demand and competition. The new scheme, named "Fare Se Fursat", aims to address this long-standing challenge "by introducing transparency and stability in pricing," a government statement said.