UDAN Scheme Set for Major Overhaul: Government Aims for Affordable Air Travel

• Central government plans a new funding system for the UDAN scheme to enhance effectiveness and sustainability.
• Current subsidy model for regional routes proved economically unviable for airlines, leading to a new proposal.
• Despite ₹4,352 crore in subsidies and ₹4,638 crore for airport development, only 60% of approved routes are operational.
• Airlines face challenges with capped fares, high fuel costs, and low passenger numbers on regional routes.
• Ministry of Civil Aviation considers extending subsidy periods and altering cost-sharing to ensure airline profitability and long-term route operation.

Why It Matters: Government is revamping the UDAN scheme with a new funding model to ensure affordable, sustainable regional air travel.