The Government of India introduced the UDAN (Ude Desh ka Aam Nagrik) plan in 2016 to lower the cost of air travel and increase accessibility for the general public in tier II and III cities. India’s commitment to promoting balanced growth throughout the country and improving regional connections is embodied in the UDAN (Ude Desh ka Aam Nagrik) initiative. Through developing regional airports in underserved and unserved areas, UDAN seeks to close geographic gaps and provide previously underserved regions with easier access to air travel.
The program encourages airlines to operate on these routes by offering subsidies and route viability gap funding (VGF), which lowers prices and increases accessibility to air travel for a more significant portion of the population. Furthermore, UDAN promotes the construction of new regional airports and the renovation of current ones, acting as a driver for infrastructural development.
UDAN Budget-Friendly Flights: Fares
Thanks to the regional air connectivity initiative, passengers on the Lilabari to Tezpur route in Assam can now fly for as little as the price of a Dessert. As part of a more significant initiative to encourage airlines to extend their services to underdeveloped areas, the scheme offers passengers a quick 50-minute flight at an exceptionally low base rate. Based on data from the travel portal Ixigo, there are 22 such cheap itineraries with base rates of around Rs 1,000. The Alliance Air route connecting Lilabari and Tezpur in Assam has the lowest base ticket, Rs 150. There will be a convenience fee and the base rate when making a ticket reservation.
The beginning cost of your airline seat is similar to a ticket’s basic fare
It pays for the base price of your flight from one location to another. Consider the ticket cost before any additional levies or fees, such as taxes, fuel surcharges, or baggage fees, are applied. That is, therefore, the whole price of the ticket, including taxes.
Most routes this inexpensive fare system covers are in the Northeast; other routes, such as Bengaluru-Salem and Cochin-Salem, have comparable prices. Other noteworthy base costs are Rs 525 for travels from Bengaluru to Salem and Rs 400 for flights between Guwahati and Shillong. Trips costing Guwahati-Pasighat Rs 999 and Lilabari-Guwahati Rs 954 are slightly more expensive. The civil aviation ministry introduced the program UDAN (Ude Desh ka Aam Nagrik) on 21 October 2016. It seeks to lower the cost of air travel and improve regional connections.
The Airports Authority of India (AAI) stated that as of 31 March 2024, 559 routes that provide advantages, such as free parking and landing, are operationalised as part of this plan.
The successful implementation of the UDAN scheme hinges on collaborative efforts between the central government and state governments, with joint funding ensuring the scheme’s sustainability. States play a pivotal role in infrastructure development and extending airline concessions, fostering a conducive environment for regional connectivity.
Route allocation operates through a competitive bidding process, wherein airlines submit proposals for operating on specific routes. The government meticulously evaluates these bids, considering affordability, connectivity, and operational feasibility factors to ensure optimal route selection. To address the financial viability of these routes, the government provides Viability Gap Funding (VGF) to bridge the gap between operational costs and revenue. This subsidy mechanism incentivises airlines to serve underserved and unserved regions, ultimately enhancing accessibility and connectivity across the country.
Conclusion
The UDAN project has significantly improved regional connectivity and accessibility throughout India since its launch. As of April 2024, UDAN has sanctioned over 766 routes, of which over 274 were operational. This represents a considerable expansion of air connectivity to formerly unserved and underserved areas. Subsidies and Viability Gap Funding (VGF) have been instrumental in bringing down the cost of flying on regional routes. In addition to making travel easier, UDAN has the potential to boost overall development in underserved areas, promote trade, and increase tourism—all of which can accelerate economic growth.
