October 23, 2025

The Indian government is ready to spice up its popular regional flight scheme, UDAN (Ude Desh ka Aam Nagrik), by exploring fresh ways to fund it. Since 2016, UDAN has made flying affordable by capping fares and supporting airlines with subsidies. But flying to remote areas is still tough and costly for airlines. Now, officials say the government wants to add 120 new destinations in the next ten years. To do this, they are thinking about giving direct budgetary support to airlines to cover losses on these remote routes – money that goes beyond the current subsidies. Currently, the government and state airports share the subsidy costs. Airlines also pay a fee of Rs 6,500 per commercial flight to fund the scheme. The government has spent over Rs 4,300 crore on subsidies and Rs 4,638 crore to build and improve airports under UDAN. An official explained, "The scheme will be expanded aggressively, including by attracting helicopter and sea plane operators. According to our calculation, the existing mechanism of funding will not be enough…to make those viable. So, we are examining alternative mechanisms." About 60% of the original 649 routes are still running, but the government has noticed some problems. For example, airlines get three years of protection when they start a route, but many smaller airlines struggle to start flights on time due to aircraft or airport issues, creating big financial pressure. Another official said, "For smaller airlines, who are substantial players in remote connectivity, they can’t start flights despite getting permission due to non-availability of aircraft or readiness of the airport. It becomes a big financial burden for them. So, there may be a requirement to increase the period of subsidy." Plans to raise the fee per flight to Rs 15,000 met resistance in 2022, as airlines worried about ticket price hikes. So, the government is now considering budget support instead, to avoid burdening passengers. According to Simran Singh Tiwana, CEO of regional airline Star Air, "Regional air connectivity is a powerful engine for progress." He adds that new flights help local businesses grow, improve healthcare access, education, and overall life quality. In short, the government wants to keep the UDAN magic alive and flying higher, with fresh financial fuel to take regional air travel to new heights!

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Tags: Udan, Regional air connectivity, Government subsidy, Airlines, Budgetary support, Air travel,