The Impact of India’s UDAN Scheme on Regional Connectivity and Airline profitability

UDAN (Ude Desh ka Aam Naagrik) was launched in India in 2016 with the aim of making air travel more accessible and affordable for the general public, particularly in smaller cities and rural areas. The profitability of the airlines that operate these routes and the extent to which the scheme has improved regional air connectivity are explored in this thesis. The research aims to provide an accurate representation of the scheme’s outcomes by utilizing government reports, airline data, and real-life scenarios. While UDAN has undoubtedly opened up new travel opportunities for people in less connected areas, the financial benefits for airlines are not as obvious. Low passenger volumes and high costs are still a challenge for many carriers. Why? The study not only reveals the challenges but also proposes practical measures that the government and industry could implement to enhance the scheme’s financial sustainability in the long run, by ensuring that regional growth and airline health are closely monitored.