{"id":141542,"date":"2022-02-16T17:59:07","date_gmt":"2022-02-16T12:29:07","guid":{"rendered":"https:\/\/www.caravanalive.com\/?p=141542"},"modified":"2022-04-06T16:36:05","modified_gmt":"2022-04-06T11:06:05","slug":"centres-udaan-scheme-crash-lands-know-its-reason-here","status":"publish","type":"post","link":"https:\/\/www.caravanalive.com\/?p=141542","title":{"rendered":"Centre&#8217;s UDAAN Scheme Crash Lands; Know Its Reason Here!"},"content":{"rendered":"<div class=\"2a6a8c3593e6620bd92d71f585bdd19b\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6453632170035383\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- NEW RESPONSIVE -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6453632170035383\"\r\n     data-ad-slot=\"2960496911\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p><strong><\/strong><\/p>\r\n<p>Out of the 948 routes awarded\u00a0within the last five years, only 403 routes connecting 65 unserved and underserved airports are operational as of December 2021. So much\u00a0for prime flying. Glaringly, only 22 routes out of the 94 total routes survived after the three-year subsidy period under the UDAN scheme.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n<p>The UDAN scheme was flagged off with much fanfare in October 2016 but has floundered. Since then, 154 RCS unconnected airports \u2013 including 14 aerodromes and 36 heliports \u2013\u00a0are\u00a0identified for the operation of flights. Out\u00a0of those, currently, only 65 have resumed flights.<\/p>\r\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/cdn.narendramodi.in\/cmsuploads\/0.99176800_1493288567_1155-pm-in-himachal-pradesh-10.jpg\" alt=\"PM launches UDAN \u2013 Regional Connectivity Scheme for Civil Aviation - from  Shimla\" \/><\/p>\r\n\r\n\r\n\r\n<p>The catch here is that these 403 routes\u00a0are\u00a0facing challenges of their own. The pandemic has made the going tougher. Out\u00a0of those 403 routes, a whopping majority of 300 routes are\u00a0affected\u00a0thanks to\u00a0poor demand. The civil aviation ministry, consequently, has stepped up and decided\u00a0to increase\u00a0the advantages\u00a0under the scheme by a year for those routes which were\u00a0certain to\u00a0complete their tenure by December 2021.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n<p>UDAN\u2019s failure draws largely from\u00a0the fact\u00a0that\u00a0it&#8217;s\u00a0a market-driven scheme which makes it\u00a0obligatory\u00a0for the govt\u00a0to form routes\u00a0way more\u00a0lucrative for airline operators. Bids under UDAN are submitted\u00a0to support\u00a0the demand assessment by the airline operator for\u00a0that exact\u00a0route or route.<\/p>\r\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/images.hindustantimes.com\/rf\/image_size_960x540\/HT\/p2\/2020\/08\/27\/Pictures\/files-india-transport-aviation-crash_f154c71c-e86f-11ea-98f7-bd84aa0e920b.jpg\" alt=\"Govt approves 78 new routes under Udan scheme; focus on North East, islands  | Latest News India - Hindustan Times\" \/><\/p>\r\n\r\n\r\n\r\n<p>The prospective take-off for the scheme was also scuttled\u00a0because the second wave left a brutal impact on the economy, especially the tourism and transportation sector. Even after four years of the launch of the scheme, only 47% of the routes and 39% of the unserved and underserved airports were operational by July. the scheme seemed on the verge of finally launching into a full flight because the\u00a0number\u00a0of latest\u00a0operational routes grew to 102 and 120 respectively. However, by FY21,\u00a0the overall\u00a0number\u00a0of latest\u00a0operational routes had declined to 79, indicating that recovery\u00a0is much\u00a0from certain.<\/p>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<p>The civil aviation ministry has also conceded to the parliamentary panel that the aviation industry\u00a0could be a\u00a0difficult ecosystem to be in considering the low yields and high operating costs.\u00a0true\u00a0is further exacerbated by delays in obtaining commuter operator permits by new airline entrants, non-availability of suitable aircraft, aircraft leasing issues, the long\u00a0time interval\u00a0for delivery, and thorny maintenance\u00a0problems with\u00a0small aircraft\u00a0likewise\u00a0as bothersome problems in procuring spares from abroad.<\/p>\r\n\r\n\r\n\r\n<p>Accompanying the dismal performance of the UDAN scheme are the sinking fortunes of the aviation industry. After having\u00a0a good\u00a0swathe of its\u00a0endeavour\u00a0destroyed by the pandemic, the aviation industry has had to battle with soaring\u00a0rock oil\u00a0prices.<\/p>\r\n\r\n\r\n\r\n<p>.<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/img.etimg.com\/thumb\/msid-89173042,width-1200,height-900\/industry\/energy\/oil-gas\/petrol-diesel-prices-static-for-84-days-in-a-row-is-a-hike-imminent-amid-surging-crude-oil-prices.jpg\" alt=\"oil price hike: Latest News on oil price hike | Top Stories &amp;amp; Photos on  Economictimes.com\" \/><\/p>\r\n\r\n\r\n\r\n<p>\u201cWhile some airlines have sufficient liquidity and\/or\u00a0support\u00a0from\u00a0a powerful\u00a0parentage,\u00a0which can\u00a0help them sustain over the near term, there are other airlines, which are already in financial stress. Furthermore, even for\u00a0the previous, credit metrics and liquidity profile have deteriorated. Until the cash inflows improve, the airlines\u00a0would force\u00a0funding support\u00a0to satisfy\u00a0their expenses\u201d<\/p>\r\n\r\n\r\n\r\n<p>An India Rating report on the aviation industry states that airlines had partially recovered in 2020 but cautioned that raising funds\u00a0is going to be\u00a0a challenge going ahead. It states, \u201cDespite challenging operating conditions, airlines have responded\u00a0run over\u00a0the last year, aggressively cutting costs and arranging for funding gaps. Barring the leading domestic airline carrier, which boasts\u00a0a powerful\u00a0record, other players are in urgent need of\u00a0record\u00a0repair. However, recurring covid waves and a smaller market share than the market leader\u00a0could be\u00a0key constraints to raising money.\u201d<\/p>\r\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/cscportal.in\/wp-content\/uploads\/2020\/12\/UDAN-Scheme-Udey-Desh-ka-Aam-Nagrik.jpg\" alt=\"UDAN Scheme \u0909\u0921\u093c\u0947 \u0926\u0947\u0936 \u0915\u093e \u0906\u092e \u0928\u093e\u0917\u0930\u093f\u0915 New Airport List 2022\" \/><\/p>\r\n\r\n\r\n\r\n<p>But it just isn\u2019t the widespread misery\u00a0within the\u00a0aviation sector that has contributed to the UDAN scheme tanking badly. Protracted regulatory clearances, paucity of funding, lack of land tracks with clear titles have all varyingly contributed to the scheme\u2019s failure.<\/p>\r\n\r\n\r\n\r\n<p>\u201cThe slow progress of UDAN implementation is\u00a0as a result of\u00a0delayed up-gradation of infrastructure and readiness of airports, lack of adequate right of way (including insufficient runway lengths) at\u00a0a number of\u00a0the RCS airports, and delays in securing necessary regulatory approvals. Low demand on few routes awarded, adverse and unpredictable\u00a0weather\u00a0cause\u00a0inconsistent operations and have also resulted\u00a0within the\u00a0closure of operations by some airlines\u00a0in an exceedingly\u00a0few cases.\u201d<\/p>\r\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Out of the 948 routes awarded\u00a0within the last five years, only 403 routes connecting 65 unserved and underserved airports are operational as of December 2021. So much\u00a0for prime flying. Glaringly, only 22 routes out of the 94 total routes survived after the three-year subsidy period under the UDAN scheme. The UDAN scheme was flagged off [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":141680,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[{"category_id":36,"category_link":"https:\/\/www.caravanalive.com\/?cat=36","category_name":"Article"},{"category_id":156,"category_link":"https:\/\/www.caravanalive.com\/?cat=156","category_name":"India"}],"tags":[{"tag_id":2698,"tag_link":"https:\/\/www.caravanalive.com\/?tag=aviation-industry","tag_name":"AVIATION INDUSTRY"},{"tag_id":3311,"tag_link":"https:\/\/www.caravanalive.com\/?tag=flights-rate","tag_name":"flights rate"},{"tag_id":3310,"tag_link":"https:\/\/www.caravanalive.com\/?tag=oil-hike","tag_name":"oil hike"},{"tag_id":3309,"tag_link":"https:\/\/www.caravanalive.com\/?tag=udaan-scheme","tag_name":"UDAAN scheme"}],"class_list":["post-141542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-india","tag-aviation-industry","tag-flights-rate","tag-oil-hike","tag-udaan-scheme"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Centre&#039;s UDAAN Scheme Crash Lands; Know Its Reason Here! - Alive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.caravanalive.com\/?p=141542\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Centre&#039;s UDAAN Scheme Crash Lands; Know Its Reason Here! - Alive\" \/>\n<meta property=\"og:description\" content=\"Out of the 948 routes awarded\u00a0within the last five years, only 403 routes connecting 65 unserved and underserved airports are operational as of December 2021. 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