UDAN scheme hits 9-year low in new airport addition; only 4 operationalized this fiscal year

Abhishek Law
5 min read25 Feb 2026, 08:34 PM IST
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UDAN was central to the government’s push to make air travel accessible and affordable for everyone in the country.
Summary
India's ambitious regional air connectivity project, UDAN, sees its slowest pace of airport additions since its 2016 launch. Airport additions under UDAN have declined steadily after peaking early.

New Delhi: With just a month left in the financial year, India has operationalized only four airports under its regional air connectivity scheme UDAN—the lowest number added in a single fiscal year since the programme began nine years ago.

However, the civil aviation ministry denied that there was any loss in momentum in adding UDAN airports.

UDAN (Ude Desh ka Aam Nagrik) was central to the government’s push to expand aviation beyond the large cities and make air travel accessible and affordable for everyone in the country. However, data submitted by the ministry of civil aviation in Parliament show that airport additions under UDAN have declined steadily after peaking early.

Airports operationalized this year were those at Amravati in Maharashtra, Purnea in Bihar and Datia and Satna in Madhya Pradesh. Datia has already turned non-operational after regional airline FlyBig suspended services, underlining the fragility of connectivity on several UDAN routes. Satna found no bidders or operators, according to minister of state for aviation Murlidhar Mohol's response in Parliament.

Satna airport was virtually inaugurated on 31 May 2025 by Prime Minister Narendra Modi along with Datia. However, it was subsequently taken off the UDAN list submitted in Parliament in February.

In FY18, 16 airports, including heliports, were connected under UDAN, followed by 18 in FY19. Fourteen airports were inaugurated in FY20. During the pandemic, nine airports each were operationalized in FY21 and FY22. The pace moderated thereafter, with eight airports added in FY23 and 10 in FY24—the year of the Lok Sabha elections. Additions fell to six in FY25 before dropping further this year.

The latest number also fell short of earlier budget expectations of upgrading 13 airports, heliports or water aerodromes and operationalizing 12 new airports.

Launched in 2016, UDAN was designed to revive air travel from underserved airports and set up new airports in unserved parts of the country. The scheme caps fares on select seats and provides financial support to airlines to operate routes that are otherwise commercially unviable.

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Sustainability concerns

In the initial years, aggressive bidding by airlines led to the reopening of several long-dormant airstrips across smaller towns. Almost a decade later, however, sustainability concerns are becoming more pronounced.

India developed 93 airports under UDAN, of which 15 are now not operational. The remaining 78 airports cater to flights on more than 650 routes, mainly linking smaller towns with metros, state capitals and key business centres. Of the 923 routes originally awarded under the scheme, 266—nearly one in three—have been discontinued.

Government spending on the programme has been significant. About 900 crore was spent to develop airports that are now non-operational, while about 260 crore was disbursed as financial support for airline operations on UDAN routes. Overall subsidy paid under UDAN since FY18 total almost 4,500 crore.

Responding to questions in the Rajya Sabha earlier this month, minister Mohol said the government is attempting to improve the long-term sustainability of UDAN by involving state governments more closely. States have been asked to identify aerodromes with stronger traffic potential, while airlines will now be required to submit business plans before routes are awarded to ensure timely operationalization.

The government has also announced plans to expand the scheme. Finance minister Nirmala Sitharaman flagged plans for the new UDAN programme in the FY26 budget speech. However, approvals are pending. A document released as part of the FY27 budget process indicated that the proposal is awaiting financial clearances before being placed before the Cabinet.

The civil aviation ministry, responding to queries from Mint, said the current year-to-date pace of airport additions should not be read as a loss of momentum.

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Changing nature

"It reflects the changing nature of the remaining airport pipeline. In the early years, UDAN could unlock several airports/airstrips needing relatively limited upgrades. At this stage, the airports in the pipeline are predominantly those requiring multi-agency clearances, land availability resolution, safety/operational validations, and airside works before they can be safely opened for scheduled operations," the ministry said in a statement.

The ministry said UDAN is now at a stage of developing airports in more difficult geographies, where operationalization requires significant civil work, security clearances and local approvals. There are also constraints that affect the pace at which an airport can move from developed to operational.

"On the airport side, causes for slower operationalization include land unavailability and technical/operational constraints, which must be resolved before airlines can commence flights safely and reliably. On the airline side, it is well documented that non-availability of suitable aircraft, leasing constraints, and maintenance issues can delay or interrupt commencement, particularly for smaller aircraft types that are typically used on regional routes," the ministry said.

Industry executives said the slowdown reflects a deeper structural issue—the limited size of India’s regional airline ecosystem compared with the pace of airport development.

There are only a few regional operators such as Fly91, Star Air, IndiaOne and state-run Alliance Air. Alliance Air itself has faced fleet maintenance challenges, while several early UDAN airlines have downsized their operations or exited the market altogether.

Connectivity on many smaller routes depends on a single airline. When fleet disruptions occur or operators withdraw, entire airports can quickly become inactive.

Shimla airport, among the earliest success stories of UDAN, is currently not operational even after a memorandum of understanding between the Himachal Pradesh government and the sole operator, Alliance Air, that expired in September 2025 was extended to 30 June 2026.

Civil aviation minister K. Rammohan Naidu told parliament that Alliance Air operated flights on the Shimla-Delhi-Shimla and Shimla-Amritsar-Shimla routes under UDAN using ATR-42 aircraft. However, operations on the Delhi sector were discontinued from 16 October 2025 after the completion of the three-year financial support tenure. The Amritsar service, which commenced on 16 November 2023, was discontinued from 17 October 2025 due to a shortage of operational aircraft in the airline's fleet, the minister said.

Similarly, FlyBig’s suspension affected airports including Moradabad in Uttar Pradesh and Datia in Madhya Pradesh.

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Regional limitations

Many of the remaining unserved or revived airstrips are suitable only for turboprop aircraft or smaller regional jets because of runway limitations and relatively weak passenger demand. Airlines facing aircraft shortages have increasingly prioritized deploying capacity on high-density metro routes where returns are stronger.

In effect, aviation infrastructure has expanded faster than the availability of suitable aircraft and operators to sustain regional connectivity.

“Demand depth is a genuine constraint. Reviving an airstrip does not automatically generate traffic,” said Mark D. Martin, chief executive officer at Martin Consulting.

The early years focused on reopening dormant airports and expanding geographic reach. What remains now are smaller markets where route sustainability is far more complex, he said.

“The challenge is no longer just building runways,” Martin added. “It is ensuring there are enough regional operators, suitable aircraft and durable local demand to keep these airports active.”

About the Author

Abhishek Law is a professional deadline whisperer, reporting on corporates and conglomerates covering sectors like aviation, PSUs, and the steel–metal–mining jungle. Trapped in a caffeine and Stockholm syndrome, he is often translating the corporate jargon into English, finding drama in a balance sheet and comedy in an earnings call. When not chasing stories, he’s arguing with commas or telling himself next week will be “chill.” It won’t.

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