Why Flight Fares Differ Drastically: The UDAN Scheme Explained

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Ever wondered why one passenger on a flight pays just ₹1,500 while another pays over ₹5,000 for the same journey, same day, same plane? It’s not a glitch or last-minute pricing trick — it’s a result of UDAN, a government-backed initiative that’s transforming regional air travel in India.

The Logic Behind the Price Gap

The secret lies in how tickets are allocated under UDAN. On eligible flights, a fixed number of seats — usually about half — are sold at subsidised, capped fares. The rest are available at market-driven prices. For example, on a 70-seater aircraft:

35 seats may be capped at ₹1,500–₹4,000, thanks to government support.
The remaining 35 can go for ₹5,000 or more, depending on demand.

So, if you book early, you’re likely to snag one of the cheaper seats. Book late, and you’ll pay the regular price.

What is UDAN?

UDAN stands for Ude Desh ka Aam Nagrik, which translates to “Let the common citizen fly.” The scheme is part of India’s Regional Connectivity Scheme (RCS), aimed at making flying more affordable for people in tier-2 and tier-3 cities by connecting remote regions with commercial air routes.

Fare Caps for Affordable Travel

To keep fares in check, the government has introduced strict price caps on subsidised UDAN seats:

Up to 500 km: ₹3,948
500–800 km: ₹5,527
Helicopter routes: ₹2,579 to ₹5,169 (depending on flight duration)

These rates apply only to the government-backed seats on eligible routes.

Massive Reach, But Not All Routes Active

So far, over 619 routes have been announced under UDAN. But not all are operational — some routes like Sindhudurg–Hyderabad or Varanasi–Patna have been paused due to low demand or logistical challenges. Still, the program has flown 1.5+ crore passengers, and the government plans to add 120 more routes, targeting 4 crore flyers in the next decade.

Who’s Flying These Routes?

Airlines like IndiGo, SpiceJet, Alliance Air, Star Air, Fly91, and others are actively operating under the scheme. With a growing network and consistent demand, these carriers are playing a crucial role in connecting India’s lesser-served regions.

Government Support for Airlines

To encourage airlines to participate, the government offers a range of financial incentives:

Viability Gap Funding (VGF) to cover operational losses on low-demand routes
VAT on fuel capped at 1%
No landing, parking, or navigation charges at regional airports
Discounted utilities like electricity and water
Subsidy support for up to three years

These benefits make regional routes financially feasible, even when passenger traffic is initially low.

Why It Pays to Book Early

In summary, if you score a flight ticket for ₹1,500 under UDAN, you’ve likely landed one of the limited subsidised seats. Once those are sold, prices shoot up to market levels — which explains the wide fare difference on the same flight. It’s not just luck; it’s policy.

So next time you fly, remember: under the UDAN scheme, early birds don’t just catch the flight — they catch the best deal too.