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The government, as per reports, is planning to introduce a revamped subsidy mechanism for airlines to operate flights from dormant regional airports
The proposed new plan seeks to directly address the lack of commercial viability on these routes by offering airlines guaranteed financial support. Representational image
In a strategic bid to activate vast, underutilised infrastructure and justify billions of dollars in public investment, the government is planning to introduce a revamped subsidy mechanism for airlines to operate flights from dormant regional airports, according to reports. This initiative is a critical overhaul of the existing UDAN (Ude Desh Ka Aam Nagrik) schemewhich aims to boost regional air connectivity and make flying affordable for the common citizen.
Despite the UDAN scheme’s success in bringing 93 airfields into operation and adding over 649 new air routes since its 2016 launch, a significant infrastructure imbalance persists. While major metropolitan airports face extreme congestion, many newly constructed or upgraded regional airports—such as those in cities like Azamgarh and Muzaffarpur—remain eerily quiet, recording zero passenger traffic for months at a time, despite possessing full air-side and city-side facilities. These “ghost projects” represent a substantial waste of public funds, particularly within the total estimated capital outlay of nearly Rs 98,000 crore targeted for airport infrastructure development across India by 2025.
The proposed new plan seeks to directly address the lack of commercial viability on these routes by offering airlines guaranteed financial support. Instead of relying solely on the original, complex auction-based model, the government will provide monthly subsidy payments to bridge the gap between regular operating costs and the discounted, capped airfares ($2,500 for a one-hour flight) offered to the public. These payments will be calculated based on factors like the number of seats sold and the specific route’s challenges. The overhaul includes introducing a direct incentive option that bypasses the bidding process entirely, making participation simpler and more attractive.
This recalibration is designed to lure major carriers into markets they have previously shunned due to low initial passenger demand. The ultimate success of the strategy will, however, depend not just on the size of the subsidies but also on the government’s ability to coordinate with state governments to ensure better last-mile connectivity and realistic local demand assessments, turning these quiet terminals into engines of regional economic growth.
Pathikrit Sen Gupta is a Senior Associate Editor with News18.com and likes to cut a long story short. He writes sporadically on Politics, Sports, Global Affairs, Space, Entertainment, And Food. He trawls X via …Read More
Pathikrit Sen Gupta is a Senior Associate Editor with News18.com and likes to cut a long story short. He writes sporadically on Politics, Sports, Global Affairs, Space, Entertainment, And Food. He trawls X via … Read More
November 12, 2025, 7:03 PM IST
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