​On a wing, Pg6

Key Highlights:

• The Union Cabinet has approved a 'Modified UDAN' scheme to boost regional aviation with a sixfold higher outlay.
• The government has allocated ₹10,043 crore over the next decade for subsidies under the Modified UDAN scheme.
• ₹12,159 crore will be invested to redevelop 100 unused airstrips.
• ₹3,661 crore will be used to construct 200 helipads in remote areas.
• The subsidy period for tier-II and tier-III routes has been extended from three to five years.

Detailed Insights:

UDAN

• A key concern is the weak underlying demand for regional aviation due to high costs, price sensitivity, and competition from other transport modes.
• The success of Modified UDAN depends on improving route selection and integrating air travel with broader transport and economic networks.

Key Concepts Involved:

• UDAN Scheme: A government initiative to enhance regional air connectivity and make air travel affordable.
• Subsidies: Financial assistance provided by the government to support specific industries or activities.
• Last-mile connectivity: The final leg of a journey, ensuring efficient transport to remote areas.