The aviation landscape in India is set for a transformative shift with the budgetary announcement to launch a modified UDAN scheme with 120 new destinations and 4 crore additional passengers over the next decade, say experts. Finance Minister Nirmala Sitharaman during her budget speech talked how Udan (ude Desh ka Aam Nagrik) has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel. The scheme has connected 88 airports and operationalized 619 routes.
She also announced a new modifies scheme to support helipads and smaller airports in hilly, aspirational, and North East region districts. Ajay Singh, Chairman and Managing Director, SpiceJet said that this initiative will not only make air travel more accessible to remote regions but will also drive economic growth and tourism, further empowering local economies.
The government launched the Regional Connectivity Scheme (RCS) Udan in October 2016 to enhance regional air connectivity from unserved and underserved airports in the country and make air travel affordable to the masses. With a view to attracting airlines to operate flights to underserved and unserved airports, support is provided in the form of viability gap funding (VGF) and other concessions by the airport operators, the central government, and state governments.
“We firmly believe in aviation’s transformative power to bridge distances and connect communities. The government’s commitment to strengthening Udan reinforces our mission and provides new opportunities to serve passengers efficiently while expanding our network,” said Simran Singh Tiwana, CEO Star Air.
Tiwama further said that the success of this expansion will depend on the seamless execution of new routes and a stronger focus on helping airlines manage operational costs more efficiently. “Ensuring sustainability in regional connectivity is essential for long-term success,” he added.