First Off, What is UDAN?
UDAN stands for Ude Desh ka Aam Nagrik, which translates to 'Let the Common Citizen of the Country Fly'. Launched in 2016, the scheme was a massive government initiative to make air travel affordable and to connect India's remote and underserved areas.
The idea was to revive old, unused airstrips and build new, no-frills airports in smaller towns. To get airlines on board, the government offered them financial support, called Viability Gap Funding (VGF), to operate on these routes, which might not be profitable otherwise. In return, airlines had to cap the fares for a certain number of seats, with a popular price point being ₹2,500 for a one-hour flight.
The Sobering Reality: Grounded Flights
For a while, the dream seemed to take flight. Hundreds of new routes were launched, connecting places that had never been on the aviation map. Over 16 million passengers have travelled on UDAN flights since the scheme began. However, a serious problem has emerged: a huge number of these routes are no longer active. Recent reports and government data show that nearly half of all routes operationalised under UDAN have been discontinued. For example, as of early 2026, out of 663 routes that were started, 327 were no longer in service. This means many airports built or upgraded under the scheme are seeing few to no flights, raising questions about the scheme's long-term success.
Decoding the Discontinuation: Why the Turbulence?
The main issue boils down to economics. Many routes were simply not commercially viable for airlines. The financial support from the government was typically for a three-year period, with the hope that the routes would become self-sustaining by then. However, in many cases, once the subsidies ended, the reality of low passenger demand hit hard. Airlines found they couldn't fill enough seats to cover high operating costs like fuel, maintenance, and airport fees. As a result, many routes were shut down as soon as the support period was over. Adding to this, the financial health of smaller regional airlines, which were key players in the UDAN scheme, has been shaky, with some even shutting down completely.
Infrastructure and Other Hurdles
It wasn't just about passenger numbers. Airlines have also pointed to significant infrastructural challenges. In some cases, airports that were awarded routes weren't actually ready for operations due to regulatory delays or incomplete upgrades. This created a financial burden for airlines that had planes ready but nowhere to land them. Furthermore, to build a sustainable network, small regional airlines need to be able to connect their passengers to major hub airports like Delhi and Mumbai. Lack of easy access and slots at these busy airports has made it difficult for them to create a viable business model.
What's Next? A Revamped 'Viksit UDAN'
The government has acknowledged these challenges and, in July 2026, launched a revamped scheme called 'Viksit UDAN' or Modified UDAN. This new phase comes with a significantly larger budget of nearly ₹29,000 crore to be spent over the next decade. One of the key changes is extending the subsidy period for airlines from three years to five, giving routes more time to become profitable. There's also a stronger focus on building up the necessary infrastructure, with plans to develop 100 new airports from existing airstrips. The goal is to address the sustainability issues that plagued the first phase and get the dream of regional connectivity firmly back in the air.
