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Issues with the UDAN scheme

Facts for Prelims (FFP)


Source: TH

Context: UDAN, aimed at improving air connectivity for smaller cities, is facing turbulence as 225 out of 479 RCS routes have ceased operations.


Issues with the UDAN Scheme:

Issues Examples
Route Closures 225 out of 479 RCS routes have ceased operations.
Examples: 128 routes shut down before completing the mandatory three-year period, and 97 routes shut down after completing the three-year period.
Commercial Unviability Airlines found 70 routes to be commercially unviable despite the subsidy. SpiceJet operates only 20 out of 74 routes awarded to it under the scheme.
Airport Readiness Airlines cite a lack of readiness in some airports as a reason for not operating certain routes. Examples: Thanjavur, Moradabad, Saharanpur, and Ayodhya airports were not ready for operations.
Non-compliance by Airlines Some routes were cancelled due to non-compliance by

the airline operators. Example: Air Deccan and Air Odisha shut down leading to route cancellations.

Financial Challenges Airlines struggling to establish markets due to low

passenger demand. Example: SpiceJet’s attempt to establish markets

on certain routes faced low passenger demand.

Inadequate Airport Infrastructure The lack of proper infrastructure at certain airports

hindered operations. Example: Airports like Thanjavur, Moradabad,

Saharanpur and Ayodhya were not ready for operations.