Financial Aid Under Udan Scheme Extended to Five Years, Minister Announces

The Civil Aviation Ministry announced on Thursday that financial assistance to airlines under the Regional Connectivity Scheme will now be extended from a three‑year to a five‑year period. Implemented gradually, the amendment is expected to make regional routes more commercially viable. The minister also confirmed that the scheme’s horizon has been pushed to ten years, and the eligibility norms for Viability Gap Funding have been widened, allowing more airports and routes to qualify. The earlier benchmark that classified an airport as "underserved" when it operated fewer than seven flights a week has been increased to fourteen flights, thereby expanding the number of facilities eligible for VGF. Operational and maintenance subsidies will also be offered to loss‑making airports in Tier‑2 and Tier‑3 cities. The government’s target is to develop 100 new airports and 200 heliports over the next ten years, a goal that will require close partnership with state governments. The workshop saw 100 percent participation from all states and union territories, signalling robust centre‑state cooperation. When asked about the Supreme Court’s request for a detailed analysis of rising air‑fares, the minister said the government will present its regulatory framework, noting that dynamic fare pricing is an internationally accepted practice essential for the sector’s growth.