At a critical time of fuel scarcity, the push to the nearly a decade-old India’s Regional Connectivity Scheme—UDAN (Ude Desh Ka Aam Nagrik)—is confronting a hard truth: aviation cannot be socially engineered into viability. Despite a renewed push involving tens of thousands of crores in public spending— now again allocated Rs 28,840 crore in expanded commitments— the scheme’s structural weaknesses are becoming more pronounced, not less. The country needs to review the policy as railway and regional metro transit are serving better.
What was conceived as a democratisation of air travel risks turning into a cautionary tale of misplaced priorities. Even in the North-East, with a difficult terrain, the scheme could not succeed as most operators ceased services. The reason is no different from other areas – routes could not attract enough passengers.
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Between 2020 and March 2026, India saw multiple fatal helicopter and small aircraft crashes involving military, government, and pilgrimage services. Major incidents include the 2022 Pawan Hans accident in the Arabian Sea, and several crashes in Uttarakhand’s Kedarnath sector killing multiple pilgrims in 2025. Authorities have periodically suspended services and tightened safety norms, but risks remain significant as the latest Baramati accident of a private company plane killing Maharashtra minister Ajit Pawar shows.
UDAN’s premise was simple: build airports, subsidise airlines, and demand will follow. But aviation demand does not arise from infrastructure alone. It is a function of income, business activity, and time sensitivity. Many small airports revived under the scheme remain underutilised or intermittently operational. Seven airports were closed in Uttar Pradesh alone. Ayodhya airport has hardly any commercial flights. The reason is straightforward—passenger volumes are too low. India’s air traffic continues to be concentrated along major metro and high-density routes, while Tier-III towns lack the economic base to sustain regular flights. Even where routes exist, load factors remain weak. Aircraft often fly half-empty, making operations commercially unviable despite subsidies. Smaller airlines operating these routes have struggled with thin margins, high maintenance costs, and low yields. Many have either exited or reduced operations.
If UDAN was already fragile, the ongoing Iran conflict has exposed its vulnerability. The war has disrupted global energy flows and pushed up ATF prices, which already account for 30–40% of airline operating costs. Since early March 2026, fuel prices have surged due to supply disruptions, forcing Indian airlines such as Air India, IndiGo, and Akasa Air to impose fuel surcharges. For regional aviation, this is devastating.
The crisis is not limited to fuel. Currency depreciation, maintenance costs, and insurance premiums have all risen, adding pressure on airlines. At the same time, passenger growth has slowed. India’s aviation sector is expected to incur losses of up to Rs 10,500 crore in FY26 due to high costs and subdued traffic. This combination—rising costs and weak demand—is lethal for regional routes.
The government’s response to UDAN’s shortcomings has been to expand, adding over 100 destinations, more heli pads, and committing large public funds. Yet expansion does not fix viability; it spreads inefficiency. Each new airport brings fixed costs—maintenance, staffing, security—without assured passenger traffic, risking underused assets turning into liabilities.
India’s connectivity needs are undeniable, but aviation is not always the best solution. For distances of 300–800 km, railways—especially trains like Vande Bharat Express—offer faster, cheaper, and more energy-efficient travel. Railways carry more passengers, require less investment, and integrate better with local transport systems. Strengthening rail links between Tier-II and Tier-III cities could yield far higher returns than building idle airports.
A more rational approach would prioritise economic viability over geographic coverage, and invest where demand already exists—or can realistically emerge. In many parts of India, that may not mean more flights. It may simply mean better trains.
