India's UDAN scheme faces challenges as nearly half of its routes are inactive. The government is launching a second phase to revive regional air connectivity.
New Delhi, India Jul 4, 2026 ALN: New Delhi: India's ambitious regional air connectivity scheme, known as UDAN (Ude Desh ka Aam Nagrik), is facing a daunting challenge, with commercial flights discontinued on nearly half the routes launched so far. This situation persists even as the government prepares to unveil the second phase of the programme, highlighting the formidable task of connecting remote and ally unviable routes despite a significant push by the government.
Since its inception in 2017, the UDAN scheme aimed to enhance air travel accessibility across the nation, particularly in underserved and remote areas. The initiative was launched with the intent of making flying affordable for the common citizen, thereby boosting regional economies and promoting tourism. However, as per data reviewed by ET, of the 669 routes made operational since the scheme began, commercial flights are currently operational on only 336 routes, indicating a stark reality of the challenges faced by the initiative.
The government has invested nearly ₹4,700 crore in subsidizing airlines to provide discounted airfares, a move designed to stimulate demand for air travel in these regions. Alongside this, an additional ₹4,800 crore has been allocated for building infrastructure at remote airports, which is crucial for ensuring that these locations can handle increased air traffic. However, the discontinuation of flights on nearly 50% of the routes raises questions about the effectiveness of these investments and the sustainability of the scheme.
Prime Minister Narendra Modi is set to unveil the second phase of the UDAN scheme, which will see a significant increase in the financial outlay to ₹28,840 crore. Notably, ₹10,000 crore of this budget will be dedicated to subsidies, and the duration of the subsidy period will be extended from three years to five years. This extension aims to provide airlines with a longer runway to establish viable operations on these routes, which often experience low passenger volumes.
In light of the challenges faced, airline and helicopter operators are advocating for easier access to metro airports and more relaxed operational rules at smaller airfields in the second phase of the scheme. The initial optimism surrounding regional air connectivity has been dampened by the financial struggles of many smaller carriers that commenced operations on these routes. Several have subsequently gone bankrupt or have curtailed their services significantly. Others have found their routes unviable once the initial three-year subsidy period expired, leading to a worrying trend of flight cancellations.
For instance, two airports in Karnataka—Bidar and Kalaburagi—had been served by daily flights operated by regional carrier Star Air. However, these routes fell off the network once the three-year subsidy was exhausted, leaving local populations without reliable air connectivity. Such instances underline the critical need for sustained support and strategic planning to ensure the longevity of services provided under the UDAN scheme.
"Major gateway airports like Delhi and Mumbai should support regional carriers for the scheme to have full impact," said Manoj Chacko, MD and CEO at Fly91, which operates a six-aircraft fleet connecting UDAN airports such as Sindhudurg and Jalgaon. This statement highlights the importance of integrating regional carriers with major hubs to create a more cohesive air travel network.
Executives at other regional carriers have expressed that timely airport preparedness remains a significant hurdle to initiating regional flights. Many of the remote airstrips identified for development into public-use airports have not been upgraded due to regulatory bottlenecks and high compliance costs associated with meeting aviation standards. These infrastructural delays can severely impact the ability of airlines to commence operations and meet the demand for air travel in these regions.
Furthermore, regional carriers are encountering difficulties in securing aircraft, as leasing companies remain cautious in the current climate. The reluctance of lessors to provide aircraft to smaller operators poses a barrier to entry for new players in the market. Vishokh Mansingh, founder-CEO at Vman Aero Services, which has provided advisory services to various airline start-ups, highlighted the need for states to consider providing aircraft to smaller operators on lease. This could potentially facilitate the establishment of operations and help fill the void left by carriers that have exited the market.
In response to these challenges, government officials have indicated that the revamped structure of the UDAN scheme is designed to address these issues. An official stated, "The subsidy period has been extended from three to five years to give more support to airlines," reflecting a commitment to adapt the programme to the realities faced by operators. Additionally, an extra ₹2,577 crore has been earmarked for airport maintenance during the early years of operation when passenger traffic is often too sparse for airports to be self-sustaining.
The implications of these developments are significant. The success of the UDAN scheme is critical not only for enhancing air connectivity but also for stimulating growth in remote regions. Improved air travel can lead to increased tourism, better access to markets for local businesses, and enhanced mobility for residents. However, the current trend of discontinued flights raises concerns about the long-term viability of the programme and the government’s ability to ensure that regional air connectivity becomes a reality for all Indian citizens.
As the second phase of the UDAN scheme is rolled out, it will be essential for policymakers to closely monitor the performance of regional carriers and address the underlying issues that have led to the discontinuation of flights on many routes. This may involve re-evaluating subsidy structures, enhancing infrastructure development timelines, and fostering partnerships between regional carriers and major airports to create a more integrated air travel network. Only through a concerted effort can the vision of connecting every corner of India through air travel be realized, ensuring that the benefits of aviation reach the underserved populations across the nation.
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