What India’s New Fixed Fare Scheme Means For Travelers

India on Monday launched a fixed fare scheme for government-owned Alliance Air in a trial phase, introducing fixed ticket prices on select routes between October 13 and December 31.

The initiative while aimed at supporting the financially challenged airline also seeks to improve affordability for travelers in smaller Indian cities. During this period, the government will assess the program’s feasibility and passenger response.

Civil Aviation Minister Rammohan Naidu Kinjarapu said Alliance Air is a key part of India’s regional connectivity scheme, UDAN, which links Tier-2 and Tier-3 cities by air.

Beyond Dynamic Pricing: The move marks a step away from India’s current dynamic pricing model, which allows airfares to fluctuate based on demand. Concerns over steep ticket prices during holidays and peak travel periods have persisted for years.

Last July, Minister of State for Civil Aviation Murlidhar Mohol said the ministry had consulted wit