In a bid to revive the regional aviation sector, the Union Cabinet has signed off on a ‘Modified UDAN’ scheme with a sixfold higher outlay. The scheme had first been launched to expand aviation to interior areas, using scheduled commuter airlines. In Modified UDAN, the subsidy period for tier-II and tier-III routes has been increased from three years to five years, an extension at least one of the small carriers had sought under UDAN before the COVID-19 pandemic hit. UDAN did not address them adequately and, sadly, Modified UDAN carries that failing over. The foremost one is weak underlying demand, with UDAN often picking routes with insufficient economic activity even as leisure and occasional travel could not sustain regular flights.

Source: The Hindu March 29, 2026 19:49 UTC