Flying Low
Business Today|October 07, 2018

The ambitious UDAN Scheme has got off to a slow start as airlines navigate the challenging operating conditions after the initial enthusiasm.

Ameya Joshi
Flying Low

IN JUNE 2018, Jet Airways and IndiGo started flights under the ambitious regional connectivity scheme (RCS), christened as UDAN (Ude Desh Ka Aam Nagrik). As Jet’s Delhi to Nashik and IndiGo’s Hubli to Kochi flights took to the skies, it marked the turning of a new chapter in the history of UDAN-RCS – a scheme that envisages use of small aircraft to connect unserved and under served airports to regional centres near them.

From finding a mention in the National Civil Aviation Plan, or NCAP, in 2016, until Prime Minister Narendra Modi inaugurated it in April 2017, the scheme – made operational under a team led by Civil Aviation Secretary R.N. Choubey – has managed to connect several remote cities and towns such as Jharsaguda, Jalgaon and Jagdalpur, and also re-connect places such as Shimla, Nanded and Kadappa. The second round of bidding a few months ago attracted as many as 17 airline and helicopter operators, including Jet and InDigo, both of which had not bid in the first round. Apart from this, for some routes, the airlines said no to viability gap funding, or VGF, a mechanism to encourage them to bid for unprofitable routes – a proof of how a dedicated team can bring about big changes in a short span of time.

But has the scheme been an out and out success? Not really, say experts. Though it has covered 453 routes, involving 160 airports, airstrips and helipads, in the initial two rounds of bidding, less than 100 of these are operational. The reasons range from lack of quality infrastructure and delay in clearances to controversy over VGF (scheduled airlines operating from major airports have moved court against the levy of Ì€ 8,000 per flight for raising money for VGF). The chinks in the scheme’s structure are preventing it from living up to its full potential.

A Long Haul

This story is from the October 07, 2018 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 07, 2018 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS TODAYView All
Look Before You Leap
Business Today India

Look Before You Leap

In 2025, Investors Will Need To Factor In Volatility Across Asset Classes

time-read
6 mins  |
December 08, 2024
"Focus on the challenge of each customer"
Business Today India

"Focus on the challenge of each customer"

SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company

time-read
1 min  |
December 08, 2024
PEDAL ON THE FUTURE
Business Today India

PEDAL ON THE FUTURE

THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY

time-read
1 min  |
December 08, 2024
BREATHE EASY
Business Today India

BREATHE EASY

Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference

time-read
2 mins  |
December 08, 2024
The Taste of India in a Glass
Business Today India

The Taste of India in a Glass

FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN

time-read
4 mins  |
December 08, 2024
MISSING ADVISORS
Business Today India

MISSING ADVISORS

INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE

time-read
7 mins  |
December 08, 2024
TURNING A CORNER
Business Today India

TURNING A CORNER

SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE

time-read
5 mins  |
December 08, 2024
REALITY CHECK
Business Today India

REALITY CHECK

INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?

time-read
6 mins  |
December 08, 2024
TRUMP'S TRADE TANGO
Business Today India

TRUMP'S TRADE TANGO

The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?

time-read
9 mins  |
December 08, 2024
"The essence of the Trump administration will be transactional”
Business Today India

"The essence of the Trump administration will be transactional”

Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more

time-read
10 mins  |
December 08, 2024