UDAN: AAM NAGRIK SOARING TO GREATER HEIGHTS

THE CONTEXT: On November 17, 2024, the Indian aviation sector achieved a significant milestone, with 5,05,412 domestic passengers flying daily. This marked the first time daily passenger numbers crossed the 5-lakh mark. This achievement underscores the scheme’s success in transforming India’s aviation landscape.

THE INTRODUCTION: UDAN, which stands for Ude Desh ka Aam Nagrik (Let the Common Man Fly), is a regional airport development program launched by the Government of India on October 21, 2016. The scheme aims to make air travel accessible and affordable for the common citizen of India, aligning with Prime Minister Narendra Modi’s vision of seeing “people wearing slippers boarding planes.”

HISTORICAL CONTEXT AND DEVELOPMENT: The UDAN scheme has evolved through several phases since its inception:

• • UDAN 1.0 (2017): Awarded 128 flight routes and operationalized 36 new airports.
  • UDAN 2.0: Added helipad connectivity and underserved airports.
  • UDAN 3.0: Introduced tourism routes, seaplanes, and focused on the North-East.
  • UDAN 4.0: Expanded operations to hilly regions, islands, and helicopters.
  • UDAN 5.0 series (5.0 to 5.4): Removed distance caps, prioritized operational airports, boosted helicopter and small aircraft connectivity, and reactivated discontinued routes.

The first UDAN flight took off on April 27, 2017, connecting Shimla to Delhi, marking the beginning of a transformative journey in Indian aviation.

KEY FEATURES OF UDAN: The UDAN scheme operates on a market-driven model, where airlines assess demand on specific routes and submit proposals during bidding rounds. Key features include:

• • Viability Gap Funding (VGF) to incentivize airlines.
  • Concessions from airport operators, central government, and state governments.
  • Capped airfares for a certain number of seats on each flight.
  • Focus on connecting underserved and unserved airports.

TEMPORAL FAILURES IN UDAN SCHEME:

• • UDAN 1.0 Failures: Out of 128 awarded flight routes to 70 airports, many routes ceased operations due to commercial non-viability. Airlines like Air Odisha and Air Deccan, which won 84 routes in the first round, shut down due to financial troubles. Several regional carriers suffered from poor financial health and inadequate aircraft maintenance.
  • UDAN 2.0 Shortcomings: Many of the 73 announced underserved and unserved airports remained non-operational. The introduction of helipad connectivity faced infrastructure and operational challenges. High operating costs and insufficient passenger demand affected route sustainability.
  • UDAN 3.0 Deficiencies: Tourism routes and seaplane services failed to materialize as planned. North-East connectivity goals remained largely unfulfilled. Water aerodrome projects saw minimal success, with only 2 out of 28 seaplane routes becoming operational.
  • UDAN 4.0 Problems: Due to infrastructure constraints, many routes to smaller airports remained non-operational. Airlines struggled with high operational costs despite subsidies. Cap on airfares affected revenue potential, discouraging airlines from operating on specific routes.
  • UDAN 5.0 Challenges: Commercial viability remains a concern despite removing distance caps and increasing Viability Gap Funding. Infrastructure development at many airports continues to lag. Of the total 774 targeted routes across all phases, 403 failed to start operations.

IMPACT ON THE AVIATION INDUSTRY:

• • Growth of regional carriers: Airlines like Flybig, Star Air, IndiaOne Air, and Fly91 have emerged and developed sustainable business models.
  • Expansion of aircraft fleet: The scheme has generated demand for various aircraft types, from small Cessna 208B Grand Caravans to larger Airbus A320/321s.
  • Boost to tourism: UDAN has improved connectivity to destinations like Khajuraho, Deoghar, Amritsar, and Kishangarh (Ajmer).

IMPLEMENTATION AND ACHIEVEMENTS:

• • Operationalized 609 routes, including helicopter services.
  • Connected states and Union Territories across India.

Transformed several airports:

• • Darbhanga Airport: Handled over 5 lakh passengers in FY 2023-24.
  • Jharsuguda Airport: Served over 2 lakh passengers in FY 2023-24.
  • Pithoragarh Airport: Began operations in January 2019.
  • Tezu Airport: Accommodated approximately 12,000 passengers in FY 2023-24.
  • On October 20, 2024, three new airports were inaugurated under the scheme: Rewa (Madhya Pradesh), Ambikapur (Chhattisgarh), and Saharanpur (Uttar Pradesh).

ECONOMIC AND SOCIAL IMPLICATIONS:

• • Enhanced regional connectivity: Improved access to tier-2 and tier-3 cities.
  • Job creation: Both direct and indirect employment opportunities in the aviation sector and related industries.
  • Promotion of tourism: Increased accessibility to various tourist destinations, boosting local economies.
  • Last-mile connectivity: Improved access to remote and underserved areas.

OVERALL CHALLENGES WITH UDAN:

• • Sustainability of routes: 225 out of 479 launched routes have ceased operations. Only 112 routes (30%) completed the full three-year concession period, and only 54 routes remained operational as of March 2023.
  • Airport Development Issues: Of 116 selected facilities, 83 failed to initiate operations on time despite an investment of ₹1,089 crore. Since May 2014, only 11 greenfield airports have become operational out of 74 planned airports. Many airports lack adequate infrastructure for safety standards and increased air traffic handling.
  • Commercial Viability Issues: Only 5.5 lakh passengers used UDAN flights in Q1 FY24, compared to total domestic traffic of 3.86 crore. Flights under UDAN have fallen by 25% in the last year due to airlines prioritizing profitable routes.
  • Ticketing System Problems: Airlines like SpiceJet and IndiGo failed to report the availability of concessional seats, and ticket booking systems lack transparency. The CAG report highlights the need for better monitoring of subsidized seat sales.

FUTURE PROSPECTS:

• • Further expansion of the scheme to more remote areas.
  • Integration with other modes of transport for seamless connectivity.
  • Adoption of green technologies to reduce the environmental impact of increased air travel.

WAY FORWARD:

• • Sustainable Route Development: Introduce a tiered Viability Gap Funding (VGF) system based on route performance and passenger load factors. Encourage airlines to develop complementary revenue streams, such as cargo services on UDAN routes. The Shimla-Delhi route, which started as a UDAN route, has become commercially viable without subsidies, demonstrating the potential for route sustainability.
  • Infrastructure Modernization and Expansion: Allocate additional funds for infrastructure development, targeting 100 new airports by 2030. Implement green building standards for all new airport constructions. Develop multi-modal transportation hubs at UDAN airports to improve last-mile connectivity. Investing in airport infrastructure is crucial for the long-term success of UDAN. It improves passenger experience and attracts more airlines to operate on these routes.
  • Environmental Sustainability: Incentivize airlines to use fuel-efficient aircraft on UDAN routes. Implement a carbon offset program for UDAN flights. Promote Sustainable Aviation Fuel (SAF) use through tax incentives and mandates.
  • Skill Development and Job Creation: Establish aviation training centers in UDAN-served regions. Collaborate with state governments to create aviation-focused vocational courses. Implement a quota system for local employment in UDAN airports and airlines. The Airports Authority of India (AAI) has partnered with the National Skill Development Corporation (NSDC) to train over 10,000 youth in aviation-related skills, which can be expanded under UDAN.
  • Technology Integration: Implement a unified digital platform for UDAN bookings across all airlines. Introduce AI-powered demand forecasting to optimize route planning. Deploy IoT sensors for real-time monitoring of airport operations and maintenance. NITI Aayog suggests that integrating emerging technologies can significantly enhance the efficiency of regional aviation operations.
  • Tourism and Regional Economic Development: In collaboration with state tourism departments, develop tourism circuits around UDAN airports. Introduce special UDAN tourism packages combining air travel with local experiences. Establish air cargo hubs at strategic UDAN airports to boost regional trade.

THE CONCLUSION:

The UDAN scheme has significantly transformed India’s aviation landscape, making air travel accessible to millions of citizens. It has not only fulfilled the aspirations of countless Indians but also stimulated economic growth and job creation. As the scheme continues to evolve, it promises to play a crucial role in India’s vision of a connected and prosperous nation.

UPSC PAST YEAR QUESTION:

Q. What is the need to expand regional air connectivity in India? In this context, discuss the government’s UDAN Scheme and its achievements.

MAINS PRACTICE QUESTION:

Q. Discuss the significance of the UDAN (Ude Desh ka Aam Nagrik) scheme in enhancing regional connectivity in India. How has it contributed to the growth of the aviation sector?

SOURCE:

https://pib.gov.in/PressNoteDetails.aspx?NoteId=153437&ModuleId=3&reg=3&lang=1