India’s ambitious drive to democratize air travel and connect its vast hinterland through the UDAN (Ude Desh Ka Aam Nagrik) scheme is facing significant headwinds, with a substantial portion of its regional airport infrastructure remaining dormant despite considerable public investment. This paradox of burgeoning investment yielding limited operational returns highlights a complex interplay of economic realities, operational challenges, and strategic misalignments in one of the world’s fastest-growing aviation markets. The government has poured billions into developing and maintaining these facilities, yet many stand as symbols of underutilized potential, incurring ongoing costs without facilitating the intended connectivity.
The UDAN scheme, launched in 2016, was conceived as a cornerstone of India’s national infrastructure development, aiming to make air travel affordable and accessible to the common citizen while stimulating economic growth in Tier-2 and Tier-3 cities. Its core mechanism involved Viability Gap Funding (VGF) to airlines, incentivizing them to operate on unserved and underserved routes by bridging the gap between operational costs and potential revenue. Complementary investments were channeled into upgrading existing airstrips and constructing new regional airports. Over the past eight years, the civil aviation ministry has disbursed more than ₹4,300 crore in VGF subsidies to airlines, alongside an additional ₹4,638 crore invested in airport development under the Regional Connectivity Scheme (RCS). Currently, out of 93 regional airports designated under UDAN, only 78 are actively operational, leaving a critical segment of 15 facilities temporarily non-operational.
The financial burden of these silent airports is substantial and growing. Documents submitted to Parliament reveal that nearly ₹900 crore has been spent on the upkeep of these 15 non-operational airports since 2017. This expenditure covers essential maintenance, security, and administrative costs, even as no commercial flights land or depart. This continuous drain on public funds raises pertinent questions about the long-term sustainability and efficacy of a purely subsidy-driven model in the aviation sector. As aviation consultant Mark D. Martin, founder and chief executive at Martin Consulting, succinctly puts it, "Subsidy-based schemes like UDAN generally do not work in aviation. Commercial viability comes when there is demand. Once the three-year subsidy or VGF period ends, many of the flight operations turn unviable, or people may not be willing to pay for high-priced tickets." This assessment underscores a fundamental challenge: establishing sustainable demand that can outlive initial financial incentives.
The reasons for routes becoming unviable or airports failing to sustain operations are multi-faceted, ranging from inherent geographical constraints to operational deficiencies and the financial fragility of regional carriers. One of the most frequently cited issues is the expiration of the three-year VGF tenure, after which airlines often find it difficult to maintain routes profitably. Beyond subsidies, issues such as poor visibility conditions at Visual Flight Rules (VFR) airports, daytime runway closures for maintenance, a nationwide shortage of pilots and suitable regional aircraft, and low passenger load factors (PLF) contribute significantly to operational suspensions. The reliance on smaller turboprop aircraft like ATRs or Dash 8s, which are essential for regional routes, also presents challenges in terms of acquisition costs, maintenance, and crew availability.
Illustrative examples of this struggle are abundant across the country. Uttar Pradesh, a key state for regional development, has seen five of its seven newly inaugurated airports in 2024 fall silent. Similarly, two airports in Madhya Pradesh face similar fates. The list of 15 non-operational sites includes Aligarh, Azamgarh, Ambikapur, Moradabad, Shravasti, and Kushinagar in Uttar Pradesh; Datia and Chitrakoot in Madhya Pradesh; Ludhiana and Pathankot in Punjab; Rourkela in Odisha; Shimla in Himachal Pradesh; Bhavnagar in Gujarat; Pakyong in Sikkim; and Kalaburagi in Karnataka. Each of these represents a unique set of challenges, yet collectively they paint a picture of systemic issues.
Shimla Airport, which famously hosted the inaugural UDAN flight in April 2017, exemplifies the struggle to maintain connectivity. Despite its symbolic importance and a continued maintenance expense of ₹116.70 crore as of December 2025, operations remain suspended. The mountainous terrain, short runway, and challenging weather conditions often necessitate specific aircraft types and highly experienced pilots, making regular, reliable service difficult. Similarly, Pakyong Airport in Sikkim, a marvel of engineering built at a cost of ₹605 crore, has incurred ₹178.75 crore in maintenance, yet faces frequent operational disruptions due to adverse weather and limited air traffic. At the other end of the spectrum, Pathankot, while less costly to maintain at ₹5.18 crore, also suffers from a lack of consistent flight services.
The case of Moradabad Airport further highlights the precarity of regional airline operations. Its services, initially operated by FlyBig, were suspended in November 2024 due to poor visibility and the absence of requisite equipment at the airport. This operational setback was a precursor to FlyBig’s eventual shutdown in October 2025, leaving Moradabad, which had already incurred ₹30.41 crore in upkeep, without any flight operations. The failures of airlines like FlyBig and TruJet, both heavily reliant on UDAN subsidies, underscore the broader point that a strong business plan and operational resilience are as crucial as government support.
Comparing India’s regional aviation landscape to global practices offers valuable insights. While subsidies for regional connectivity are common in many developed economies – such as the Essential Air Service (EAS) program in the United States or various state aid mechanisms within the European Union – their success often hinges on meticulous demand assessment, robust infrastructure, and a diversified airline ecosystem. China, for instance, has aggressively expanded its airport network, often through state-led initiatives, but its strategy integrates airport development with broader economic and industrial hubs to ensure demand. The Indian model, while aiming for similar decentralization, appears to struggle with the ‘last mile’ of commercial viability.
Despite the challenges, some industry players remain optimistic about the potential for regional aviation. Manoj Chacko, founder and managing director of FLY91, a regional airline that commenced operations in 2024, emphasizes the need for "viable airline operators with clear business plans." He notes that while infrastructure exists at many airports, a shortage of airlines willing and able to operate efficiently within the RCS framework is a significant hurdle. Chacko points to success stories like Jalgaon and Sindhudurg in Maharashtra, which have thrived under the regional connectivity scheme, demonstrating that with the right business model and demand drivers, routes can indeed become commercially viable. For instance, the Shimla-Delhi route, despite its current suspension, has historically seen regular flights, suggesting latent demand that could be tapped with suitable operational solutions. FLY91, operating a fleet of ATRs from hubs like Goa and Hyderabad, represents a new wave of regional carriers attempting to navigate these complexities.
Moving forward, recalibrating India’s regional aviation strategy will require a multi-pronged approach. This includes a critical review of the VGF tenure and structure, potentially extending support or making it performance-linked to allow routes to mature. Investing in advanced all-weather landing systems and comprehensive air traffic control infrastructure at regional airports, rather than just runways, is crucial to overcome operational limitations like poor visibility. Furthermore, fostering a robust ecosystem for regional aircraft maintenance and pilot training can address critical supply-side constraints. On the demand side, targeted efforts to promote tourism and industrial development around these regional hubs could organically generate passenger traffic. Ultimately, the success of India’s regional aviation ambitions will depend on a shift from merely building infrastructure and providing subsidies to cultivating a sustainable, commercially viable ecosystem where operational efficiency, demand generation, and strategic airline partnerships take precedence over mere spending. Without this recalibration, many of India’s small-town airports risk remaining expensive, silent monuments to unfulfilled potential.
