New UDAN Regional Flight Plan Awaits Cabinet Approval in India

India’s civil aviation authorities have submitted a revised regional air service plan under the UDAN (Ude Desh ka Aam Naagrik) scheme to the Union Cabinet for approval, proposing a more expansive framework aimed at boosting connectivity across underserved and tier-2/3 cities.

The fresh UDAN proposal outlines revised fare caps, modified subsidy mechanisms and expanded eligibility for larger aircraft categories, signalling a strategic shift in regional aviation policy. Civil aviation planners contend the revisions will help attract more airline participation on routes that have historically struggled to sustain scheduled service due to limited demand, thin yields and operational cost pressures.

UDAN was launched to improve affordability and accessibility of flights across secondary and remote airports by offering financial incentives to carriers and subsidising seat fares on selected routes. Under the plan awaiting Cabinet clearance, the scheme would extend these incentives while adjusting the structure of viability gap funding (VGF) to more effectively balance airline economics with broader connectivity goals. It also includes proposals to raise the fare cap for certain longer regional sectors to better align with prevailing cost structures.

The revised framework proposes to allow larger aircraft with higher seat capacity to participate in designated regional routes. Previously, UDAN’s fare and subsidy models were largely tailored to turboprop aircraft and smaller jets. By accommodating larger regional and narrowbody jets, policymakers aim to encourage airlines to pursue underserved city pairs with greater operational flexibility, particularly those with latent demand potential.

Airport operators have welcomed the cabinet submission as a positive step toward strengthening India’s regional infrastructure, noting that expanded services under UDAN could enhance runway utilisation, ground handling operations and ancillary aeronautical revenue. Secondary airports — including those in central and eastern India — have often struggled to attract scheduled services on commercially viable terms, with limited connectivity hindering economic integration.

Airline strategy teams are watching the policy move closely. A broader UDAN framework with expanded aircraft eligibility and revised fare bands could influence network planning decisions among domestic carriers, especially low-cost and regional operators that rely on government incentives to underwrite marginal routes. For major airlines, enhanced UDAN economics may offer opportunities to deploy right-sized aircraft and capture growth on feeder markets that link to larger hubs.

The proposed revisions also touch upon slot coordination, ground leasing waivers and route exclusivity provisions designed to encourage new entrants while maintaining competitive balance. By refining incentive allocation and expanding geographic coverage, the aviation ministry expects to foster enhanced service continuity — a challenge that has faced past UDAN rounds where routes sometimes struggled to sustain post-grant service levels.

From the passenger perspective, expanded UDAN routes could yield greater choice, reduced travel times and enhanced connectivity to previously isolated regions. Tourism bodies and local industry associations argue that improved air access is closely tied to regional economic development, facilitating business travel, cargo flows and tourism segments that have seen renewed interest post-pandemic.

The cabinet’s review will involve cross-ministry consultation on the fiscal implications of expanded subsidies and the alignment of airport infrastructure budgets with expected route activation. The finance ministry’s perspective on sustainable budget allocations and long-term viability gap funding remains critical to the scheme’s ultimate approval and implementation timeline.

Aviation analysts predict that the approved plan, once finalised, could trigger a new investment cycle in India’s regional aviation ecosystem, particularly if it successfully balances airline participation incentives with robust operational metrics. Stakeholders anticipate that the Cabinet’s endorsement will signal continuity in regional connectivity policy, reinforcing India’s broader agenda of inclusive air transport development and network expansion.