When the regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik) was launched in 2017, five players emerged as winners in the first bidding round. In 2021, there are 11 such operators under the UDAN scheme.

While there are structural issues such as lack of infrastructure, high fuel costs as well as reduced subsidies due to COVID, some of the regional airlines under UDAN do see a future for themselves as established regional players.

A recent report said that UDAN has witnessed slow progress of implementation, as not even 50 percent of the route have been operationalised and the second wave of the pandemic, which started from mid of March 2021, may impact it further going forward.

Rating agency ICRA in its report said that there is likely to be a further delay of two years in achieving the target of operationalising as many as 100 unserved and underserved airports and starting at least 1,000 RCS routes by 2024.

Watch the accompanying video of CNBC-TV18’s Anu Sharma in conversation with StarAir and TruJet and find out more about their journeys so far and the way ahead.

(Edited by : Abhishek Jha)

First Published:Jul 27, 2021 4:04 PM IST