What Is the UDAN Scheme, Really?
UDAN, which stands for Ude Desh ka Aam Nagrik ('Let the Common Citizen of the Country Fly'), was launched in 2016 with a grand vision. The goal was to make flying accessible and affordable by connecting unserved and underserved airports in Tier-2 and Tier-3
cities. The mechanism involves the government providing financial support, known as Viability Gap Funding (VGF), to airlines that bid for these regional routes. In exchange for this subsidy, airlines must cap fares on a certain percentage of seats, making the dream of flight a potential reality for millions. The scheme is funded by a levy on flights operating on major trunk routes.
The Promise of an Affordable Fare
The most talked-about feature of UDAN was its fare cap. When launched, the scheme famously capped fares at around ₹2,500 for a one-hour flight on 50% of the seats on an aircraft. The remaining seats could be sold at market rates. This hybrid model was designed to make flights cheap enough to attract new flyers while allowing airlines to earn revenue. The VGF from the government was meant to cover the shortfall for the airline on these subsidised seats. This structure was the engine of the scheme, intended to stimulate demand in areas where air travel was previously considered a luxury.
So, Why Are So Many Routes Discontinued?
Despite the ambitious rollout, the reality has been challenging. As of mid-2026, nearly half of the routes launched under UDAN are no longer operational. Reports indicate that of the 669 routes made operational since 2017, only 336 are still active. There are several reasons for this. A primary issue is that many routes become commercially unviable for airlines once the initial three-year subsidy period ends. Passenger demand often isn't strong enough to sustain the flights without government support. Furthermore, smaller regional airlines, which were key to the scheme, have faced bankruptcy or curtailed operations. Other significant hurdles include delays in making airports ready for flights, high operational costs, and a lack of access to prime landing slots at major metro airports like Delhi and Mumbai, which are crucial for creating a viable network.
The Real-World Impact on Small Towns
For many smaller towns, the arrival of an UDAN flight was a moment of celebration, promising better connectivity, trade, and tourism. The discontinuation of these services represents a significant setback. For example, airports like Bidar and Kalaburagi in Karnataka saw daily flights vanish once the three-year subsidy ended, effectively cutting them off from the air network again. This stop-start connectivity makes it difficult for both passengers and businesses to rely on air travel. The inconsistency has led to passenger skepticism, where people become wary of booking flights on routes that have a history of being cancelled. It highlights a core challenge: launching a route is one thing, but sustaining it is a far more complex economic puzzle.
What's Next for Regional Flying?
The government has acknowledged these challenges and is not giving up on the scheme. A revamped scheme, sometimes referred to as 'Viksit UDAN' or a modified UDAN, was launched in July 2026 with a significantly increased outlay of ₹28,840 crore. Key changes include extending the subsidy period for airlines from three years to five, hoping this gives routes more time to become self-sufficient. There's also a renewed focus on infrastructure, with funds earmarked for developing airstrips and helipads. Airlines and experts argue that for the scheme to truly succeed, structural issues must be addressed, such as ensuring airports are fully prepared before routes are awarded and giving regional carriers better access to major hub airports to build sustainable networks.
