UDAN extended for 10 years: 120 more destinations, 40 million fliers to benefit

Air connectivity to smaller cities is expected to get a boost with the government on Saturday announcing extension of the Regional Connectivity Scheme beyond its original tenure of 10 years.

This entails launching a modified version of the Ude Desh ka Aam Nagrik (UDAN) scheme for connecting 120 destinations and 40 million additional fliers over the next decade, finance minister Nirmala Sitharaman said while presenting the budget. The UDAN scheme was launched in October 2016 to get more people flying in what is already the world's fastest growing aviation market. Under the scheme, the government caps airfares and offers incentives, including subsidy, to attract airlines to fly less traversed routes.

Sitharaman said under the scheme, 619 routes connecting 88 airports, including two water aerodromes and 13 heliports, have been operationalised so far benefitting 14 million passengers. “With the launch of a modified UDAN scheme that will introduce 120 new destinations and bring 40 million additional passengers in to the fold over the next decade, the aviation landscape in India is set for a transformative shift,” said Ajay Singh, chairman and managing director at SpiceJet.

“This initiative aligns perfectly with our vision of enhancing regional connectivity by linking Tier-3 and tier-2 cities directly to urban hubs, making air travel more accessible than ever,” said Simran Singh Tiwana, CEO of Star Air.

Star Air, which started flights on more than 90% of the routes it won by bidding under the scheme, plans to expand its fleet to 14 aircraft by this year-end from nine currently. Touted as a major boost to air connectivity, the UDAN scheme however got a mixed result so far with only about 60% of the original 619 routes planned currently operational.

Also, multiple airports developed under the scheme such as Pakyong in Sikkim, Solapur and Sindhudurg in Maharashtra, and Kushinagar in Uttar Pradesh do not have any flights currently.