The Dream of Connecting Bharat
Launched in 2016, the Ude Desh ka Aam Naagrik (UDAN) scheme was a cornerstone of India's plan to democratise air travel. The vision was powerful: connect unserved and underserved airports in Tier-2 and Tier-3 cities, boosting local economies, tourism,
and providing crucial links for business and healthcare. The government offered subsidies, known as Viability Gap Funding (VGF), to airlines to cap fares on these new routes, making the dream of flying a reality for millions. By operationalising hundreds of routes and connecting dozens of new airports, the scheme initially showed great promise in stitching the vast fabric of India closer together.
A Growing Number of Ghost Routes
Despite the initial success, a troubling trend has emerged. Recent reports from July 2026 indicate that out of 669 routes made operational since the scheme's inception, only 336 remain active. This means almost 50% of the flight paths pioneered under UDAN have been discontinued. Examples abound, from airports in Karnataka like Bidar and Kalaburagi losing their connections once subsidies ended, to a number of airports developed under the scheme having no regular flights at all. This high rate of failure raises serious questions about the long-term sustainability of the programme, even as the government has spent thousands of crores on subsidies and airport infrastructure.
The Economics of Empty Seats
The primary reason for these closures is simple economics. Many routes proved to be commercially unviable for airlines once the initial three-year subsidy period expired. Airlines, operating in a high-cost environment, struggle with thin profit margins. Key challenges include low passenger demand on thinner routes, making it impossible to cover operational costs without government support. Additionally, some airlines that jumped into the regional market have since gone bankrupt or scaled back operations. The result is a cycle of launching routes with fanfare, only to see them quietly disappear when the financial support dries up, leaving airports and passengers stranded.
More Than Just Financial Woes
The problem isn't just about subsidies. Airlines point to significant operational hurdles that make running regional routes difficult. A major issue is the lack of airport readiness; many airstrips identified under UDAN have not been upgraded due to regulatory hurdles and high compliance costs. This means an airline might win a bid for a route but cannot operate flights because the destination airport isn't functional. Another critical challenge is the lack of slots at major metro airports like Delhi and Mumbai. Regional carriers argue that without connectivity to these major hubs, it's nearly impossible to build a sustainable network that attracts enough passengers to be profitable.
Why This Story Matters Now
The relevance of UDAN's struggles is growing because it strikes at the heart of India's infrastructure and equitable development goals. These discontinued routes represent more than just failed business plans; they are broken promises to small-town India. For residents, a lost flight connection means a step backward in accessing business opportunities, specialized healthcare, and education. With improved road and rail networks offering cheaper and sometimes more reliable alternatives for short distances, the viability of certain air routes is being questioned more than ever. The issue highlights a crucial policy crossroad: how to balance ambitious national goals with the on-ground economic and logistical realities.
Recalibrating for a Sustainable Future
In response to these challenges, the government has launched a modified scheme, sometimes referred to as Viksit UDAN, in July 2026. With a significantly larger outlay of over ₹28,000 crore, the revamped plan aims to extend the subsidy period from three to five years and allocate more funds for airport development and maintenance. The focus is shifting from merely launching routes to ensuring their long-term survival. The plan includes developing 100 new aerodromes and supporting the induction of indigenous aircraft. However, experts caution that unless the fundamental issues of demand assessment and operational bottlenecks are addressed, the new phase risks repeating the mistakes of the past.
