The Ministry of Civil Aviation (MoCA) is preparing to launch UDAN 5.0, with a focus on heliports, sea aerodromes and regional airports, in the next few weeks, said ministry sources. The new round will also recalibrate old, unoperational routes and also introduce new routes.

Additionally, the rules of UDAN (Ude Desh ka Aam Nagrik) are set to be revamped to define the role of exclusivity in certain routes, after concerns were raised by industry players.

More routes

According to one of the two ministry officials contacted by businessline, UDAN 5.0 is expected to be launched within the next few weeks.

“The process will commence by May,” the person said, adding that, “With the government’s focus on mobilising heliports and sea aerodromes, this round of UDAN will have multiple routes in this segment. The move is aimed at promoting tourism and providing faster and more efficient connectivity to remote areas.”

Also read: A dream flight: How UDAN is giving wings to aspirations in small towns

As per a recent government’s response in the Lok Sabha, Airports Authority of India (AAI), the implementing agency, has awarded 1,152 valid UDAN routes so far. Out of these awarded routes, 469 routes connecting 74 airports including 9 heliports and two water aerodromes have been operationalised. More than 2.21 lakh UDAN flights have operated as on 28.02.2023, it said.

‘Rejig in model’

Another government official said that in this round, “The motive is to rejig the UDAN model. For multiple reasons, there have been routes which have remained unoperational. This round will recalibrate old, unoperational routes.

In the previous rounds, airline operators such as IndiGo, SpiceJet, Alliance Air, Air Deccan, and Star Air have continued to participate and have been awarded more routes. In an earlier conversation with businessline, Akasa had said it plans to expand in tier 2 and 3 markets, and will evaluate suitable UDAN routes.

In the upcoming round, the UDAN routes are set to see major changes.

Also read: All you wanted to know about International UDAN

“The Ministry is set to revise the rules related to exclusivity and make them more flexible. The move is aimed at addressing the concerns raised by the industry players and promoting competition on regional routes. The revised rules will define the role of exclusivity on certain routes and allow other airline operators to operate on those routes once the exclusivity period is over,” the person added.

The exclusivity clause in the UDAN scheme was introduced in the third round of the scheme launched in 2019. Under this clause, the airline operators who were awarded UDAN routes were given an exclusive right to operate those routes for a period of three years. During this period, no other airline operator was allowed to operate on those routes.

The aim of the exclusivity clause was to provide the airline operators with a certain level of certainty and assurance to operate the routes without facing competition from other airlines.

However, the clause was also criticised by some airline operators who felt that it limited competition and reduced the scope for other airlines to operate on the same routes, which could have resulted in better connectivity and lower fares for passengers.

comment COMMENT NOW