Passenger Traffic Trends and Barriers: Post-Implementation of the Regional Connectivity Scheme (RCS) – UDAN

The Regional Connectivity Scheme (RCS) – UDAN (Ude Desh Ka Aam Nagrik) was launched in 2016 as a strategic initiative by Ministry of Civil Aviation (MOCA), Government of India to enhance regional air connectivity and make air travel affordable for the masses in semi-urban and rural areas. While the scheme has supported the expansion of air services to underserved and unserved airports, its long-term sustainability and effectiveness remain subjects of analysis. This study examines passenger traffic trends and barriers post-implementation of UDAN, identifying factors affecting its success and challenges that hinder its continued growth and sustainability. The research aims to analyse passenger growth patterns, assess the operational and economic barriers faced by the operators, evaluate the effectiveness of Government incentives through Viability Gap Funding (VGF), and compare UDAN with global regional air connectivity models such as the U.S. Essential Air Service (EAS) and Europe’s Public Service Obligation (PSO) routes. A mixed-method research approach is adopted to incorporate the quantitative analysis of DGCA and AAI passenger traffic data (2017–2023) and qualitative insights from the surveys and interviews with passengers, airline operators, and policymakers. Findings to reveal the initial passenger trends and growth on UDAN routes (2017–2020), followed by stagnation and a 39.39% decline in 2022–23 due to operational inefficiencies, low demand, and airline sustainability challenges. Infrastructure constraints, airline profitability issues, passenger awareness, and policy execution gaps emerges as critical barriers. The study concludes that while UDAN has successfully expanded regional connectivity, but continued policy refinements, financial sustainability strategies, and multimodal integration are essential for its long-term success. Recommendations include extended financial support, infrastructure upgrades, and improved airline participation incentives to ensure the financial and operational viability of regional air connectivity. Keywords: Regional Connectivity, Passenger Traffic Trends, Viability Gap Funding, Airline Sustainability, Infrastructure Barriers