India’s civil aviation sector is experiencing an unprecedented expansion, with official figures consistently highlighting the rapid pace of infrastructure development, notably the addition of a new airport approximately every 45 to 50 days. This impressive statistic, which has seen 89 new airfields become operational across the nation over the past 11 years, underscores the government’s ambitious vision to democratize air travel and position India as a global aviation powerhouse. However, beneath the surface of this rapid growth lies a complex interplay of infrastructural ambition, economic realities, and the critical question of sustainable utilization.
A detailed analysis of 78 airports either newly constructed, upgraded, or connected since 2017 reveals a significant disparity between capacity creation and actual demand. Nearly 60% of these newer facilities recorded fewer than 10,000 domestic passenger footfalls per month on average in 2025. This contrasts sharply with the median Indian airport, which typically manages around 24,000 passengers monthly. Furthermore, a similar proportion of these regional airports saw fewer than five domestic flight movements daily, falling short of the national median of approximately seven aircraft movements per day. These metrics raise pertinent questions about the long-term economic viability and strategic planning behind such extensive capital deployment, especially when compared to global benchmarks where even smaller regional airports in developed economies often aim for higher traffic densities to justify operational costs.
The core of this expansion strategy is rooted in the government’s flagship Ude Desh ka Aam Nagrik (UDAN) scheme, launched in 2016. UDAN, an acronym meaning "Let the common citizen fly," was designed to make air travel affordable and accessible by connecting unserved and underserved Tier-2 and Tier-3 cities through regional connectivity scheme (RCS) flights. The scheme offers Viability Gap Funding (VGF) to airlines and concessions from airport operators to stimulate demand and reduce operational costs on designated routes. While laudable in its intent to foster economic growth and integration across diverse regions, the execution has presented challenges. The initial enthusiasm, exemplified by the first UDAN flight from Shimla’s Jubbarhatti airport in April 2017, has often been tempered by subsequent operational realities. By 2025, the same Shimla airport averaged just two flights per day and was eventually included in a list of temporarily suspended airports by December, illustrating the fragility of demand in certain regional markets.
The challenges extend beyond individual airports. Approximately one-fifth of the total routes and 15 airports initiated under the UDAN scheme have been discontinued, representing a substantial investment of nearly ₹900 crore in assets that are currently non-operational. These include facilities in Ludhiana, Pathankot, Aligarh, and Pakyong, with Uttar Pradesh alone accounting for six of the temporarily suspended airports. The reasons cited by the government for these suspensions range from the expiration of the three-year VGF tenure, which removes the crucial financial lifeline for airlines, to more systemic issues such as aircraft shortages, leasing complications, and a fundamental lack of sustained passenger demand. As Ankita Shah, Vice President at Elara Capital, points out, "A lot of regional airports have come up even before there was sustained airline interest or where there was actual local demand in place." This highlights a supply-side push preceding a robust demand pull.
The underperformance is stark in several instances. Airports like Mundra in Gujarat, Utkela in Odisha, and Pasighat in Arunachal Pradesh recorded merely 3,000-4,000 passenger footfalls over the first 11 months of 2025. Nineteen other airports saw less than 20,000 passengers in the same period. Such low utilization rates translate into significant operational inefficiencies and question the return on public investment. The costs associated with maintaining runways, air traffic control, terminal facilities, and security personnel at underutilized airports remain substantial, draining resources that could potentially be reallocated to more productive infrastructure projects or demand-side stimulation.
However, the narrative is not uniformly bleak. Success stories within the UDAN framework demonstrate the immense potential that regional aviation holds when demand factors align. Thirty-one airports saw over 100,000 passenger traffic, with seven notably exceeding 500,000 passengers. These high-performing hubs include Goa (Mopa), Rajkot (Hirasar), Prayagraj, Ayodhya, Hindon, Darbhanga, and Shirdi. Their success often correlates with strong underlying drivers such as popular tourist destinations, significant pilgrimage sites, burgeoning industrial hubs, or strategic proximity to major metropolitan areas. For instance, Ayodhya’s impressive passenger numbers are intrinsically linked to its cultural and religious significance, while Goa (Mopa) benefits from its status as a premier leisure destination. These examples suggest that an airport’s success is deeply intertwined with the economic and social dynamism of its catchment area.
Beyond the physical infrastructure, the operational capacity of airlines is a critical determinant of success. The recent challenges faced by major carriers, such as IndiGo’s difficulties in complying with new Flight Duty Time Limitations (FDTL), underscore the broader systemic issues. A shortage of pilots and cabin crew, coupled with maintenance backlogs and supply chain disruptions for aircraft parts, can cripple an airline’s ability to serve new routes, irrespective of the availability of airport infrastructure. This exposes the need for a holistic development approach that addresses not just airports but also airline fleet expansion, skilled personnel development, and a robust regulatory framework that supports sustainable operations.
Looking ahead, India’s aviation ambitions remain sky-high. The government aims to add at least 50 more airports over the next five years, maintaining its current rapid construction pace. The long-term vision for 2047, marking the 100th year of India’s independence, is even more audacious: to increase the total number of airports to 350-400 from the current 163, and to elevate annual passenger traffic to 1.1 billion from approximately 350 million today. While these targets reflect India’s aspirations to become the world’s third-largest economy and a significant global player, they also highlight the scale of the challenge. Even 1.1 billion air passengers would only represent about 14% of the over 7 billion passengers currently served by Indian Railways, underscoring the vast untapped potential, yet also the considerable gap that needs to be bridged in terms of affordability and last-mile connectivity.
Experts like Suprio Banerjee, Vice President at Icra Ltd, emphasize that the traffic at any airport is fundamentally a function of the economic activity, international trade, investment, and global connectivity of its surrounding region. While acknowledging the currently marginal contribution of UDAN airports to total air traffic, Banerjee remains optimistic about their "healthy long-term potential," given India’s significant under-penetration of air travel. However, a consensus is emerging that future expansion must be more judicious. The initial phase of rapid airport creation, while providing critical connectivity to many regional areas, has largely been a supply-side intervention. The next phase, therefore, should prioritize a sustained trend of increased demand in Tier-1 and Tier-2 cities before further massive infrastructural outlays. As Ankita Shah suggests, "The key performance indicator should change from the number of airports to how the traffic intensity is moving and how the average spend on the airport per person is improving." This shift in focus from mere quantity to quality and economic efficiency will be crucial for ensuring that India’s ambitious aviation drive truly takes flight on a sustainable and profitable trajectory.
