Regional carriers press for slots, aircraft and easier rules as India relaunches UDAN

India has relaunched its Modified UDAN regional air-connectivity scheme with a reported 10-year outlay of ₹28,840 crore, but regional carriers say the program will only work if the government fixes the operational and regulatory frictions that hurt the first phase.

The relaunch was tied to Prime Minister Narendra Modi’s visit to Rajasthan and the inauguration of Jodhpur airport’s new terminal. It is being sold as a renewed push to improve access to underserved towns and smaller cities, but it also lands after reporting that commercial service has already been discontinued on about half the routes launched under the original UDAN programme.

A second push for regional flying

UDAN is India’s regional connectivity scheme, designed to link smaller and underserved places with supported air service. The original version helped launch many routes, but its economics proved fragile on thin-demand sectors.

That history is central to the new launch. The government is presenting Modified UDAN as a fresh phase, while the industry is using the same moment to argue that route economics alone will not make regional aviation durable.

What airlines want changed

Regional carriers say the scheme needs better airport slots, aircraft better suited to low-demand routes and simpler rules. Their view is that the first phase ran into practical problems that made some services hard to sustain even after they started.

The core complaint is not about the idea of regional connectivity. It is about whether the operating environment matches short-haul flying, where airport timing, aircraft choice and administrative burden can determine whether a route survives.

The scale of the new plan

Reporting around the relaunch said the modified scheme carries a ₹28,840 crore outlay over 10 years. One report also said the plan includes development of 100 existing airstrips into UDAN airports, with ₹12,000 crore earmarked for that work.

Those numbers show the size of the government’s ambition. They also raise the bar for delivery, because the practical test will be whether the money translates into usable schedules, reliable airport access and routes that can last beyond the launch phase.

Why the stakes are high

The reported discontinuation of commercial flights on roughly 50% of routes launched so far under the original programme is the warning sign hanging over the relaunch. It suggests that route creation is easier than route survival.

For passengers in remote and underserved areas, the question is whether the new phase delivers real connectivity or repeats the earlier pattern of launches followed by drop-offs. For airports and airstrips, it is whether upgraded infrastructure gets steady use. For airlines, it is whether the economics can work without constant friction.

What to watch next

The immediate questions are operational. Carriers are waiting for the government’s detailed rules, the final route list and any changes to subsidy or viability support.

It is also unclear which airlines will commit aircraft to the new phase, how slots will be managed at constrained airports and whether the government will add enough support to keep services from being withdrawn again.

For now, the relaunch gives UDAN a fresh start. Whether it becomes a durable regional network will depend on whether the next phase fixes the problems airlines say undermined the first one.