What is the UDAN Scheme?
UDAN, short for Ude Desh ka Aam Naagrik ('Let the Common Citizen of the Country Fly'), is a government initiative launched in 2016 to make air travel accessible and affordable for millions. The idea was simple but revolutionary: connect India's vast number
of unserved and underserved airports in Tier-2 and Tier-3 cities. Before UDAN, flying was largely a big-city affair. This scheme aimed to change that by reviving dormant airstrips and encouraging airlines to fly to places that were previously not on the aviation map. The government provides financial support, known as Viability Gap Funding (VGF), to airlines to cover losses on these commercially challenging routes. In return, airlines cap the fares on a portion of the seats, often making a one-hour flight available for around ₹2,500.
The Turbulence: Why Are Routes Being Discontinued?
Despite its noble goals, the scheme has hit significant turbulence. According to recent data, nearly half of the 669 routes that were operationalised since 2017 are now discontinued. The core issue is sustainability. The primary reasons for route closures include low passenger demand, high operating costs for airlines, and operational challenges. Many routes become unviable for airlines once the initial three-year subsidy period ends. If passenger numbers aren't high enough to cover costs after the government support is withdrawn, airlines are forced to pull out, leaving newly connected towns stranded once again.
The Airline Perspective: A Bumpy Ride
For airlines, especially smaller regional carriers, operating UDAN routes is a high-stakes gamble. While subsidies help, they don't solve all the problems. These airlines often grapple with a shortage of suitable aircraft, supply chain issues for parts, and the high cost of aviation turbine fuel. Moreover, many regional airports lack the infrastructure for all-weather operations, such as Instrument Landing Systems (ILS), leading to frequent cancellations, especially in difficult terrain or bad weather. This unreliability erodes passenger confidence, making it harder to build sustained demand. Another major challenge is the lack of slots at major metro airports like Delhi and Mumbai, which makes it difficult for regional carriers to create a viable network connecting small towns to major hubs.
Impact on 'Aam Aadmi' and Small Towns
The discontinuation of routes is a significant setback for the residents and economies of the regions that briefly enjoyed air connectivity. For many in small towns, a flight that took an hour replaced a gruelling 12-hour train or bus journey. The arrival of air connectivity often brings a sense of optimism, boosting local tourism, trade, and access to better healthcare and education. When these flights stop, it's not just an inconvenience; it's a loss of opportunity and a return to relative isolation. Airports developed with significant investment risk becoming 'ghost airports' if they cannot sustain regular flight schedules.
The Path Forward: Viksit UDAN
The government is aware of these challenges and is already taking corrective measures. In July 2026, the Prime Minister launched a modified version of the scheme, sometimes called 'Viksit UDAN'. This new phase comes with a significantly larger budget of nearly ₹29,000 crore over ten years. Key changes include extending the Viability Gap Funding period for airlines from three to five years, providing more support for airport maintenance, and a massive push to develop 100 new aerodromes and 200 modern helipads. The aim is to address the structural issues of the original scheme and build a more resilient and sustainable regional aviation network.
