From Ribbon-Cutting to Reality
For years, the narrative of regional aviation in India was one of rapid expansion, marked by the frequent inauguration of new and upgraded airports in Tier-2 and Tier-3 cities. Under the Ude Desh ka Aam Nagrik (UDAN) scheme, launched in 2016, the country’s
airport count has swelled, connecting dozens of previously unserved or underserved towns. This push aimed to democratise air travel, fostering economic growth, tourism, and providing crucial links to remote areas. The initial phase was a visible success, bringing air travel to the doorstep of millions and creating a sense of progress. However, the focus is now shifting from the pomp of airport openings to the much harder questions of what happens next. A terminal building and a runway are only the first step; their true value lies in sustained operations, and the data reveals a challenging reality.
The Affordability Question
At the heart of the UDAN scheme is the promise of affordable fares, with a portion of seats on subsidised routes capped to make flying accessible. Airlines receive Viability Gap Funding (VGF) from the government to compensate for operating commercially challenging routes. While over 1.4 crore passengers have benefited from the scheme, the long-term affordability is complex. Airlines can charge market rates for non-subsidised seats on the same flight, leading to significant price variations. Furthermore, the subsidies are time-bound, typically lasting three to five years. Once this period ends, airlines must operate the routes commercially, often leading to fare hikes or the complete withdrawal of services, leaving passengers with the same old connectivity gaps. The dream of a consistent, low-cost flight can vanish as soon as the financial support does.
The Puzzle of Route Viability
For airlines, especially smaller regional carriers, operating UDAN routes is a high-stakes gamble. The core challenge is low passenger demand on many routes, which makes them financially unviable even with subsidies. Reports indicate that nearly half of the routes launched under UDAN have since ceased operations. Airlines face a multitude of hurdles, including high operational costs, inconsistent passenger loads, and difficulties in securing aircraft. Some airports lack essential infrastructure like night landing facilities, restricting flight schedules and aircraft utilisation. As a result, many routes are dropped once the three-year VGF exclusivity period ends, as seen in cases like Bidar and Kalaburagi in Karnataka. This has led to a landscape of "ghost airports" — infrastructure that is built and inaugurated but sees few or no scheduled flights.
Connectivity Is More Than Just a Flight
True connectivity extends far beyond a single flight route. For passengers in regional India, it means convenient flight timings that allow for same-day return trips for business, and seamless connections to major metro hubs for onward national or international travel. It also includes last-mile connectivity through integrated public transport like buses and rail from the airport into the city. The lack of these elements can render a new flight service impractical for many. Airlines argue that to build a viable network, they need better access and slots at major airports to connect their regional services. The government's revamped ‘Viksit UDAN’ scheme, with an extended 10-year plan and a larger budget, aims to address these issues by providing longer subsidy periods and funding airport maintenance. The new phase also includes the development of helipads to reach even more remote areas.
