Why Flight Tickets on the Same Day Can Cost ₹1,500 or ₹5,000 — More About UDAN Scheme?

UDAN stands for Ude Desh ka Aam Nagrik — literally “Let the common citizen fly.”

Ever wondered why two passengers on the same flight, on the same day, can pay drastically different fares — one paying just ₹1,500 and the other ₹5,000? It may seem puzzling, but this price gap isn’t an error or a last-minute surge. It’s actually a result of UDAN, a government-backed scheme designed to make air travel more affordable and accessible in regional India.

What Is UDAN?

UDAN stands for Ude Desh ka Aam Nagrik — literally “Let the common citizen fly.” Launched to connect smaller towns and underserved regions by air, the scheme keeps ticket prices low on select routes by subsidising a portion of the seats.

Here’s how it works: while some seats on a flight are capped at a fixed, subsidised rate, the rest are sold at market prices. That’s why, on the same flight, one traveler might grab a budget fare while another pays much more.

Currently, over 600 routes are designated under UDAN, with airlines like IndiGo, SpiceJet, Alliance Air, Star Air, Fly91, and others participating.

So, How Does the Pricing Work?

To encourage airlines to operate regional routes (which might not be commercially profitable), the government provides financial support called Viability Gap Funding (VGF).

Here’s a simplified example:

An airline flies a 70-seater aircraft on a regional route.

Half the seats (35) are capped at a fixed fare — say ₹4,000 — and subsidised by the government.

The remaining 35 seats are sold at market prices, which can go up to ₹5,000 or more, based on demand and availability.

The idea? Reward early bookers with the lowest fares, while giving airlines the flexibility to price the remaining seats competitively.

Government Fare Caps Under UDAN

To ensure affordability, the government has set caps on ticket prices based on distance:

Up to 500 km: ₹3,948

500–800 km: ₹5,527

Helicopter routes: ₹2,579 to ₹5,169 (depending on duration)

What’s in It for Airlines?

Operating a route under the Regional Connectivity Scheme (RCS) comes with added perks for airlines:

Fuel VAT capped at just 1%

No landing, parking, or navigation fees

Discounted utilities like water and electricity

Subsidy support for up to 3 years

These incentives make it financially viable for airlines to serve smaller airports and remote areas.

Are All Routes Active?

While 619 routes have been announced under UDAN, not all of them are currently operational. Some — such as Sindhudurg–Hyderabad or Varanasi–Patna — have been paused due to low demand or other operational hurdles.

Still, the scheme has made an impact: over 1.5 crore passengers have flown under UDAN so far. The government now aims to add 120 more routes and reach 4 crore passengers in the next 10 years.

So, Why the Huge Price Difference?

If you spot a ticket for ₹1,500, it’s probably one of the subsidised UDAN seats. But these are limited — once they’re gone, prices revert to standard market rates, often upwards of ₹5,000. That’s why it pays to book early.