FCC

New UDAN scheme development underway

2024-05-31

The civil aviation ministry is developing an expanded version of the regional air connectivity scheme, UDAN, which aims to ease entry barriers and reduce operational costs. This initiative is designed to attract new participants. The scheme will include new categories such as seaplanes, small aircraft, and helicopters, and will also focus on developing low-cost regional airports.

Sources indicated that the final details of the scheme will be determined once the new government assumes office next month. Currently, the availability of aircraft, high financing costs, and regulatory norms, such as the requirement for a dedicated, proven operational history, act as barriers for potential entrants. The new scheme will also aim to streamline the entry criteria for new operators of small aircraft in the 9-20 seat category.