India’s Fixed Airfare Scheme 2025: How the “One Route, One Fare” Initiative Could Revolutionize Budget Air Travel in India

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by

Himanshu
in

Air travel in India has grown rapidly over the last decade, becoming one of the most dynamic aviation markets in the world. Yet, frequent flyers — especially from Tier 2 and Tier 3 cities — have long faced a major frustration: fluctuating ticket prices. With dynamic pricing algorithms, the cost of a flight could jump by thousands of rupees within hours, especially around holidays or festivals.

In a landmark move, the Indian government, through Alliance Air, has introduced the “One Route, One Fare” policy, also known as the Fixed Airfare Scheme. This initiative aims to eliminate dynamic pricing and ensure that every passenger pays the same fare for a specific route, regardless of booking date.

This could be a turning point for India’s aviation sector — promoting affordability, transparency, and inclusivity for millions of travelers.

What is the “One Route, One Fare” Policy?

The Fixed Airfare Scheme, launched by Alliance Air, India’s regional public sector airline, is a pilot project under the tagline “Fair Se Furat” — meaning fairness that ensures smooth travel.

Under this system, ticket prices remain constant across a given route, whether the ticket is booked one month in advance or just one day before departure. The aim is to reduce unpredictability and make air travel accessible for common citizens, particularly during high-demand seasons.

Key Highlights of the Scheme

ParameterDetails
Initiative NameOne Route, One Fare (Fixed Airfare Scheme)
Implemented ByAlliance Air (Government-Owned Airline)
Launch TypePilot Project
Duration of Trial PhaseUntil December 31, 2025
ObjectiveTo test fixed pricing on select domestic routes
Target AudienceMiddle and lower-middle-class travelers
Focus RoutesTier 2 and Tier 3 city connections
Dynamic PricingCompletely eliminated for selected routes
Fare ModelFixed fare applicable to all booking dates

Why This Policy Matters

Air travel in India, though rapidly expanding, remains expensive and unpredictable for the majority of passengers. Dynamic pricing algorithms used by most airlines often lead to steep fare hikes during:

  • Festival seasons (Diwali, Holi, Christmas)
  • School holidays or long weekends
  • Emergency bookings

For example, a Delhi–Lucknow flight that might cost ₹2,800 on a weekday could soar to ₹7,500 during Diwali week.

With “One Route, One Fare,” such volatility is removed — enabling consistent ticket prices, fair access, and more transparent travel budgeting for everyone.

How the Fixed Airfare Scheme Works

The concept is simple yet impactful.

1. Fixed Base Fare

For each selected route, Alliance Air sets a base fare (e.g., ₹3,500 from Delhi to Dehradun). This fare remains unchanged throughout the booking period, regardless of date or demand.

2. Inclusion of Basic Charges

The fixed fare includes:

  • Base ticket price
  • Applicable government taxes
  • Airport development fees
  • Fuel surcharges

No hidden surcharges or last-minute markups apply.

3. No Algorithmic Fluctuation

Unlike private airlines that use AI-based revenue management systems to adjust fares dynamically, the government’s system locks prices for the entire trial duration.

4. Route Focus

Initially, the scheme targets UDAN (Ude Desh ka Aam Nagrik) routes — connecting underserved regions and smaller towns with metros — such as:

  • Delhi–Shimla
  • Bhopal–Indore
  • Lucknow–Gorakhpur
  • Kolkata–Shillong

These short-haul flights typically range between 200–800 km, ideal for low-cost and regional travel.

Advantages of the Fixed Airfare Policy

BenefitDescription
1. Price PredictabilityTravelers know exactly what they’ll pay months in advance, removing uncertainty.
2. InclusivityMakes flying accessible to Tier 2 and Tier 3 travelers, not just metro city residents.
3. Boosts TourismAffordable pricing encourages domestic tourism and regional connectivity.
4. Reduces Black MarketingFixed fares minimize ticket hoarding and resale at inflated prices.
5. Encourages Early PlanningStable pricing promotes organized travel habits among passengers.
6. Promotes Government’s UDAN VisionSupports the goal of connecting India’s smaller towns by air.

Challenges and Industry Concerns

While the idea is progressive, experts note several challenges ahead.

ChallengePossible Impact
Loss of Revenue for AirlinesFixed pricing may limit revenue optimization during peak periods.
Low Profit MarginsWith fuel prices and airport fees fluctuating, constant fares could squeeze profits.
Scalability IssuesExtending the model to all airlines and routes may be complex.
Passenger BehaviorTravelers may delay bookings since prices no longer rise, affecting load factors.
Operational CostsRising ATF (Aviation Turbine Fuel) rates may make long-term implementation difficult.

Despite these issues, the government believes that mass adoption could create economies of scale, reducing per-passenger operational costs over time.

The Economic Context

  • India’s domestic aviation market serves 150+ million passengers annually, expected to reach 400 million by 2030.
  • Airfare costs on key routes have risen by over 35% in the last three years due to post-pandemic recovery and fuel inflation.
  • Regional connectivity under the UDAN scheme has already added 470+ new routes, expanding access for smaller towns.

The “One Route, One Fare” initiative fits perfectly within this framework — aiming to make flying a mass mode of transport, not a luxury.

Public Response So Far

Early feedback has been largely positive, especially among travelers from smaller cities who often found last-minute flight prices prohibitive.

Surveys conducted by travel agencies in early October 2025 indicate that:

  • 72% of respondents support the idea of fixed fares.
  • 61% said they are more likely to book air tickets for short trips.
  • 18% expressed concern about limited flexibility in refund policies under the fixed fare model.

If the pilot phase succeeds, the government plans to expand it to 25–30 additional routes by early 2026.

Future Outlook

The “One Route, One Fare” initiative could redefine air travel for India’s growing middle class. It represents a significant shift — not just in fare structure, but in philosophy. The government’s message is clear: air travel should not be a privilege, but a public utility.

If successful, the model could:

  • Encourage private airlines to adopt hybrid pricing (part fixed, part variable).
  • Drive competition based on service quality, not fare manipulation.
  • Set a global precedent for transparent, equitable air travel pricing.

However, its success will depend on careful data monitoring, cost management, and consistent service quality from participating airlines.

Conclusion

The Fixed Airfare Scheme is a bold experiment — one that prioritizes fairness over profit maximization. While it challenges the revenue models of traditional airlines, it aligns perfectly with India’s long-term goal of democratizing aviation.

By offering price stability and inclusivity, “One Route, One Fare” could transform how Indians fly — making air travel a predictable, affordable, and everyday experience for millions.

Disclaimer:

This article is based on currently available information about the “One Route, One Fare” pilot program by Alliance Air as of October 2025. Policy details, routes, and implementation strategies may evolve. Readers are advised to check for the latest government announcements and airline updates before making travel plans.