A year on, UDAN is yet to soar

A year on, UDAN is yet to soar

News:

1. UDAN scheme has recently completed one year.

Important facts:

2. The UDAN (Regional Connectivity Scheme) was launched in 2016 aims to develop the regional aviation market and provide connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.
3. Current status of the of UDAN Scheme

• The Ministry of Civil Aviation had planned to add the 56 non-operational airports to the aviation map  only 16 are ready.
• Out of 25 , Only 10 under-served airports which has been developed.
• The  Subsidiary airline such as Air India subsidiary Alliance Air etc have been able to deliver on most or all the routes assigned to them.

4. There are Multiple factor which lead to poor performance of the UDAN include:

• Irregular services of the Airlines
• Lack of trained pilots
• Availability of few planes due to technical issues.
• The frequent cancellation rates of flights
• The UDAN scheme has maintained the entry barriers low and less regulatory procedures to attract more players but it counterproductive for the scheme.

5. Confederation of Asian and Pacific Accountants (CAPA) in a report suggests:

• There is little or no business for small and independent operators
• The Operating use of older equipment on routes dispersed across multiple stations is of great concern

6. Major Challenges with the Scheme

• Infrastructure bottlenecks has led to lower the pace in implementation the scheme.
• Some airports owned by State governments and private players have been hesitant in participating because of low profiting making.
• Many obligation of scheme have made airline player to show their reluctance in participating.

7. Achievement of the Scheme

• Many routes have seen a steady rise in the number of passengers
• The cumulative average of seat occupancy has increased from 55% to 70% in a year

8. Way forward

• The northeast should be connected to maximum the passenger traffic
• Regional Connectivity Scheme have less competition and competitive pressures and should be proactively used by new startups.
• The government should take stakeholder in confidence to make UDAN scheme a success.