Ude Desh ka Aam Nagrik (UDAN) was launched as a regional connectivity scheme under the Ministry of Civil Aviation in 2017. It is an innovative scheme to develop the regional Aviation market with some key features. Its main goal is to make air travel affordable and extensive, to boost inclusive national economic development, job growth and air transport infrastructure development of all regions and states of India. The UDAN scheme aims at stimulating regional connectivity with flights covering distances up to 800 km through a market-based mechanism.

According to industry chamber FICCI, about 53 airports across the country have been streamlined to execute operations under the scheme. A dozen airports where limited but irregular flights operate will be connected. As many as 31 destinations that are not operational despite the existence of airports will become active. Furthermore there are many airports in Tier 2 and Tier 3 which remain empty which hardly receive one two flights in a week. It is worth noting that the air travel sector of the country has improved tremendously.

The scheme will be jointly funded by the central government and state governments. The scheme will run for 10 years and can be extended thereafter.

Features of UDAN Scheme

i) Improving air transport infrastructure in all parts of the country with a special focus on remote areas. ii) Ambitious plan of making 425 underserved airports operational in the country iii) Improving the economy of the country by facilitating faster connectivity for strengthening supply chain iv) Creating job opportunities in the aviation sector v) Making air services available at lower prices.

Components of UDAN Scheme

It has two components. The first one is to improve the existing airports and develop new ones for faster regional connectivity. The second one is the addition of new, topped airfare and financially viable regional real roots.

Funding for UDAN Scheme

Is done by Central Government; the government aims at giving subsidised air fares with help of Viability Gap Funding (VGF). Viability Gap Funding means a grant to support projects that are economically justified but not financially viable. Such a grant under VGF is provided as a capital subsidy to attract the private sector players to participate in PPP projects that are otherwise financially unviable.

Under the UDAN scheme concessions are given on ticket-related taxes. UDAN also allows flight code sharing which is a marketing arrangement in which an airline places its designator code on a flight operated by another airline, and sells tickets for that flight. Airlines throughout the world continue to form code-share arrangements to strengthen or expand their market presence and competitive ability

The State Governments reduce the GST to 1%. They help in improving fuelling infrastructure by coordinating with oil companies. Provide free security personnel and land for airport development. They also assist in supplying water, electricity, etc at cheap rates.

Airport Operators

Airport operators provide on-airport roadways, automobile parking facilities, rental car availability, passenger pick-up and drop-off locations, and various truck facilities to accommodate cargo and mail movements. For UDAN flights the operators will not charge for parking, landing, storage, etc. They will not charge nil terminal navigation landing charge. They will give 4% discount on UDAN-RCS flight’s Route Navigation and Facilitation Charge (RNFC).

UDAN scheme has evolved in four rounds. The 4th round of UDAN was launched in December 2019 with a special focus on North-Eastern Regions, Hilly States, and Islands. The airports that had already been developed by Airports Authority of India (AAI) are given higher priority for the award of VGF (Viability Gap Funding) under the Scheme. Under UDAN 4, the operation of helicopters and seaplanes are also been incorporated. Air India and SpiceJet have the biggest fleet of regional planes under this scheme. Jet Airways too flies on regional routes but did not participate in the first UDAN round.

UDAN has facilitated regional air connectivity by making it affordable for the common man in India. And, slowly the scheme is helping the nation in creating entrepreneurial climate and many jobs.

The sinking feeling for the Maharaja

This year in February, the loss-making Air India, ahead of Lok Sabha elections, in an unparalleled move announced 203 promotions. This move was taken in a brazen violation of standards and a Bombay High Court (HC) order restricting the sick airline from any promotions.

In an unprecedented move, the management of the ailing Maharaja announced a phenomenal 203 promotions even while it is not being able to pay monthly salaries to its staff. The air line promoted 126 senior managers to assistant general managers (AGM), 24 AGMs to DGM, 23 managers to senior managers and 30 deputy managers to managers.

Air India is faced with cumulative debt burden of Rs 35,000 cr. The fresh Government of Narendra Modi is concerned and has to take swift actions to revive the national airline. Not even a week old, PM Narendra Modi’s new Civil Aviation Minister Ashok Gajapathi Raju indicated yesterday the new government wants to review the free passage scheme offered by cash-starved Air India to its 24,000 employees. The Government will examine matters such as the definition of a family under the scheme called ‘Passage Entitlement-Vacation Travel.’ Under this scheme, top officers like functional directors and joint managing directors are entitled to get 24 free tickets each year, while the lowest rung staffer are entitled to eight tickets annually. However, all taxes and fees have to be paid by the employees who avail such tickets.

To worsen the issue, Air India had come out with a circular in April saying the spouse of a deceased staffer could transfer his or her tickets to their children or step-children. It seems as per IATA resolution, it is a global practice in the aviation sector. But, in a struggling economy like ours, don’t you all feel that a decision to shower the legacy bonanza on Air India staffers is a shame on its management when the airline is saddled with whopping cumulative losses and is a classic case of shackling administration?? The loss-making airline has an army of 24,000 permanent employees, one of the highest amongst airlines worldwide when it comes to aircraft-workforce ratio.

The millions of tax payers of this country are vulnerably watching sinking PSUs owing to unprofessional conduct and negligence; the leader among them is the brazen Air India. Why are we tolerating the series of unabashed mistakes of this air line?  Why do certain policies never change, despite public indignation? Dear taxpayers of this country arise, question, and demand actions. It is ‘Now or Never’. We need to put an end to the misdoings of series Aviation Ministers. Let the Government not maintain a white elephant – Air India. After all it’s our (taxpayer’s) money which is going in upholding it. But, I perceive bright chances in privatization of Air India; it could possibly be one of the major disinvestment moves of the Narendra Modi government.