The Ambitious Dream of UDAN
Launched in 2017, the Ude Desh ka Aam Nagrik (UDAN) scheme was a game-changer. The vision was simple but powerful: connect India's underserved and unserved airports, make flying affordable for the common citizen, and boost regional economic growth. The model
worked by providing Viability Gap Funding (VGF), a subsidy paid to airlines for operating on commercially challenging routes. In return, airlines offered 50% of their seats at a capped fare, bringing destinations like Jharsuguda, Darbhanga, and Kalaburagi onto the national aviation map. Since its inception, the government has invested thousands of crores in subsidies and airport infrastructure, and millions of passengers have taken flight.
Why Are Flights Being Grounded?
Despite the initial success, a harsh reality has set in. Of the 669 routes made operational under UDAN, only 336 are currently active. The core issue is sustainability. The scheme's original design provided subsidies for a three-year period, after which airlines were expected to operate the routes profitably on their own. This has proven difficult. Many routes suffer from low passenger demand, especially outside of tourist or festival seasons, making them unviable without financial support. For smaller airlines, the high operating costs of fuel and maintenance, coupled with the challenges of a limited fleet, create immense financial pressure once the VGF ends. Several regional carriers have even gone bankrupt, leading to abrupt cancellations.
The Impact on Small-City Travellers
For travellers in Tier-2 and Tier-3 cities, the discontinuation of a flight is more than an inconvenience; it's a reversal of progress. Where a one-hour flight replaced an overnight train journey, passengers must now return to slower, more arduous travel. This impacts everyone: students travelling to universities, patients seeking specialised medical care in metro cities, and families visiting relatives. The loss of a direct flight can mean the loss of time, money, and opportunity. The dream of quick, affordable connectivity, which had briefly become a reality for many, has been put on hold, pushing them back towards the constraints of road and rail.
Ripple Effects for Regional Businesses
Air connectivity is a powerful catalyst for local economies. The arrival of a UDAN flight often brought a surge in tourism, hospitality, and other commercial activities. Small business owners, hoteliers, and local entrepreneurs who invested in new ventures, banking on a steady flow of visitors, are now facing uncertainty. For regional industries, the ability to fly executives and clients in and out quickly was a significant advantage. The withdrawal of these flights can stifle investment, making it harder for local businesses to compete and grow. It reinforces a sense of economic isolation that the UDAN scheme was specifically designed to break.
A Reality Check for Planners and Airlines
The high rate of route closures serves as a critical feedback loop for aviation planners. The challenge lies in designing routes that are not just desirable but sustainable. Airlines have pointed to significant hurdles, including regulatory bottlenecks and delays in making remote airstrips fully operational. Another major issue is the lack of slots at major hub airports like Delhi and Mumbai, which are crucial for regional carriers to build a viable network that feeds passengers from smaller towns into the larger system. Without this integration, regional routes often remain isolated and struggle to attract sufficient traffic.
The Next Flight Path: A Modified Approach
The government has not given up on the dream. Recognizing the challenges, a revamped scheme, sometimes called 'Viksit UDAN' or Modified UDAN, was recently launched with a significantly increased outlay of nearly ₹29,000 crore. Key changes include extending the subsidy period from three to five years to give routes more time to mature and placing a stronger emphasis on developing a complete aviation ecosystem, including modern airport terminals and helipads. This new phase aims to learn from the past, focusing on creating a more robust and sustainable foundation for regional aviation, rather than just launching routes.
