India’s UDAN regional connectivity scheme faces a stark reality: nearly half of the 669 routes launched since 2017 are now non-operational
Despite heavy subsidies and airport investments, only 336 routes still have flights.
Government launches a revamped phase with higher funding and longer support, but questions persist over sustaining services to remote, commercially weak destinations
Almost Half Of UDAN Routes Have Become Non-Operational, Says Report
The development highlights the difficulties of sustaining air links to remote and commercially challenging destinations despite substantial government support
Almost Half Of UDAN Routes Have Become Non-Operational, Says Report
Summary
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India's flagship regional connectivity programme, UDAN (Ude Desh ka Aam Nagrik), is entering its next phase with a renewed financial commitment, even as almost half of the routes launched under the scheme have ceased commercial operations.
According to a report by The Economic Times (ET), out of the 669 routes made operational since the scheme was introduced in 2017, only 336 continue to have commercial flight services.
The development highlights the difficulties of sustaining air links to remote and commercially challenging destinations despite substantial government support.
The Centre has so far spent close to ₹4,700 crore in viability gap funding to help airlines offer affordable fares on regional routes. In addition, around ₹4,800 crore has been invested in developing airport infrastructure in underserved regions, as per ET.
Prime Minister Narendra Modi launched the second phase of the scheme on Saturday, with the government increasing the overall allocation to ₹28,840 crore. The revised programme earmarks ₹10,000 crore for airline subsidies, while extending the support period from three years to five years.
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Operators Seek Infra Support
According to ET, several regional airlines have struggled to continue services after government subsidies ended or due to financial distress. Smaller operators that initially served many UDAN routes have either shut down or scaled back operations, making several routes unviable.
The report cited Karnataka's Bidar and Kalaburagi airports as examples, where daily services operated by Star Air were discontinued after the three-year subsidy period expired.
Airline executives also flagged delays in airport readiness as a major obstacle. Several airstrips identified under the scheme remain unprepared for commercial operations because of regulatory hurdles and compliance costs, the report said.
Govt Extends Support Under Revamped Scheme
Industry experts have also highlighted difficulties in aircraft acquisition. They suggested that state governments could lease aircraft to regional operators to improve connectivity and reduce entry barriers, as per ET.
Government officials told the publication that the revised structure of UDAN has been designed to address several of these concerns.
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The report added that the government has also allocated an additional ₹2,577 crore for airport maintenance during the initial years, when passenger traffic remains insufficient to make regional airports financially self-sustaining.