India revamps UDAN scheme for remote air routes
after close1 source ↓written by the desknot a recommendation
- contributes 80
- ₹6,500 per flight
- has been disbursed
- ₹4,352 cr
- of awarded routes
- 60%
The Indian government is overhauling the UDAN scheme to address financial challenges faced by airlines on unprofitable routes. Currently, ₹6,500 per flight contributes 80% of the subsidy, but this model is unsustainable. Since 2016, ₹4,352 cr has been disbursed in subsidies, yet only 60% of awarded routes remain operational.
This overhaul aims to secure long-term viability and is pending Cabinet approval, which may impact airline operations and investments in the aviation sector.
Not investment advice. For informational purposes only.