Budget 2025: Airlines welcome UDAN network expansion, aviation infra plans

ANI February 1, 2025 300 views

The Indian government has unveiled an exciting new plan to dramatically expand regional air connectivity through an enhanced UDAN scheme. This budget promises to connect 120 new destinations and bring air travel to millions of middle-class Indians who previously had limited access. Airlines are enthusiastic about the potential for growth, seeing it as a transformative moment for India's aviation sector. The government's vision is to establish India as a global aviation hub by 2030, with strategic investments in infrastructure and connectivity.

"The aviation landscape in India is set for a transformative shift" - Ajay Singh, SpiceJet Chairman
New Delhi, February 1: Airline operators have hailed the Union Budget 2025-26, with the government putting an additional thrust on the ever-growing domestic civil aviation sector.

Key Points

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Modified UDAN scheme to connect 120 new destinations

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Government aims to make India global aviation hub by 2030

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Plan targets 4 crore additional passengers in coming decade

Inspired by the success of the previous regional connectivity scheme, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.

The scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts.

Ajay Singh, Chairman and Managing Director, SpiceJet, said this is a forward-looking, middle-class-friendly budget that promises to boost spending, stimulate development, and set the stage for India's growth in the coming years.

"With the launch of a modified UDAN scheme that will introduce 120 new destinations and bring 4 crore additional passengers into the fold over the next decade, the aviation landscape in India is set for a transformative shift," Singh said.

UDAN has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel. The scheme has connected 88 airports and operationalized 619 routes.

The UDAN scheme, launched in April 2017, focuses on improving unserved air routes in underserved regions. India's aviation industry has experienced significant growth in the past decade, and the number of operational airports in the country has since doubled.

The government aims to make India a global aviation hub by 2030.

"Investment in developing world-class airports, enhancing regional connectivity, capacity upgrades, procedures, regulatory framework and streamlined visa facilities, will all play critical role in bringing this vision of developing India into a global aviation hub to life," said Pieter Elbers, CEO, IndiGo.

Vinay Dube, Founder and CEO, Akasa Air, said, ''The Union Budget 2025 marks a significant step in supporting the sustained growth of India's aviation sector. We commend the government's commitment to infrastructure which will make air travel more accessible, thereby boosting tourism and the economy on the whole."

Presenting the Budget in Parliament on Saturday, Finance Minister Nirmala Sitharaman also announced that greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.

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