UDAN scheme transforming aviation landscape, making air travel affordable: Center

New Delhi: The Indian aviation landscape has undergone a significant transformation under the UDAN (Ude Desh ka Aam Nagrik) scheme as the number of operational airports in the country has doubled from 74 in 2014 to 157 in 2024 and the aim is to increase this number to 350-400 by 2047, the government said on Sunday.

The number of domestic air passengers has more than doubled in the last decade, with Indian airlines significantly expanding their fleets.

Led by the Ministry of Civil Aviation (MoCA), UDAN aims to improve regional air connectivity of unserved and underserved airports across India, making air travel affordable for the masses.

“As UDAN celebrates its seventh anniversary, it is a testimony to the Indian government’s commitment to improving infrastructure and connectivity, especially in remote regions,” the ministry added.

Regional carriers such as Flybig, Star Air, IndiaOne Air and Fly91 have benefited from the scheme, developing sustainable business models and contributing to a flourishing ecosystem for regional air travel.

Notably, Indian carriers have placed orders for over 1,000 aircraft scheduled for delivery over the next 10-15 years, significantly increasing the existing fleet of approximately 800 aircraft.

The first UDAN flight took off on April 27, 2017, connecting the serene hills of Shimla to Delhi. UDAN operates on a market-oriented model, where airlines assess demand on specific routes and submit proposals during bidding rounds.

According to the ministry, the government has implemented several support measures to attract airlines to operate flights in less profitable markets

Airport operators have waived landing and parking fees for Regional Connectivity Scheme (RCS) flights, and the Airport Authority of India (AAI) does not charge Terminal Navigation Landing Fees (TNLC) on these flights.

Additionally, a discounted Route Navigation and Facilitation Fee (RNFC) is applied. During the first three years, the excise tax on aviation turbine fuel (ATF) purchased at RCS airports was capped at 2%. Airlines are also encouraged to enter into code-sharing agreements to expand their reach.

“States have committed to reducing VAT on ATF to 1 percent or less for ten years and to providing essential services such as security, fire and utility services at reduced rates,” the ministry said.

Initiatives such as UDAN 3.0 have introduced tourist routes connecting various destinations in the Northeast region, while UDAN 5.1 focuses on expanding helicopter services in mountainous areas to stimulate tourism, hospitality and local economic growth.