The government plans to increase financial aid for airlines participating in the UDAN regional connectivity scheme from three years to five years gradually. Union Minister of Civil Aviation Ram Mohan Naidu revealed this development during a UDAN workshop, mentioning that the scheme, now extended for another decade, will broaden the criteria for airports to qualify for viability gap funding (VGF). Naidu explained that the previous classification of airports as unserved or underserved if they had fewer than seven flights per week has been revised to 14 flights per week to enable more routes to benefit from VGF.
The minister emphasized the government’s rapid expansion of airport infrastructure and its current focus on enhancing regional connectivity through policy modifications. Naidu highlighted the ongoing efforts to establish new terminals or airports on a monthly basis and stressed the importance of enhancing connectivity by amending the existing UDAN scheme. Additionally, he announced operational and maintenance (O&M) support for airports in Tier-2 and Tier-3 cities struggling to cover operational costs due to low passenger traffic.
Naidu reiterated the government’s ambitious goal of constructing 100 airports and 200 heliports in the next ten years, underscoring the crucial role of close collaboration with states in achieving this objective. He also addressed the Supreme Court’s request for a detailed report on escalating airfares, assuring that the government would provide a comprehensive explanation of its regulatory framework. The minister defended the practice of dynamic fare pricing, stating its importance in promoting the aviation sector and enhancing connectivity, noting that airlines in India are permitted to implement dynamic pricing.
