India's domestic aviation sector has witnessed rapid expansion over the past decade, emerging as the world's third-largest domestic aviation market with more than 159 operational airports and airline orders exceeding 1,500 aircraft. However, industry experts argue that the next phase of growth will depend not only on expanding airport infrastructure but also on developing sustainable regional connectivity. While the government's UDAN scheme has significantly improved air access to smaller cities, many subsidised routes have struggled to remain commercially viable once financial support ended.

According to available data, only about half of the 669 routes launched under the UDAN programme continue to operate, while a Comptroller and Auditor General (CAG) audit found that only a small proportion of routes remain viable after subsidies expire. Analysts suggest the challenge is not a lack of demand, as travel between Tier-2 and Tier-3 cities continues to grow through road and rail networks. Instead, they argue that regional aviation needs to be planned around economically active travel corridors supported by stronger hub connectivity rather than focusing solely on individual routes.

The revised UDAN policy seeks to address some of these concerns by placing greater emphasis on airport viability, economic potential, and industry participation. Aviation experts believe future planning should focus on integrated regional networks that connect business centres, tourist destinations, healthcare hubs, and industrial clusters with larger airports. Such an approach would improve passenger convenience while strengthening the commercial sustainability of regional flights by linking them with broader domestic and international networks.

Also Read: India’s First Clean Energy Train Set For Launch In Haryana By PM Modi

Another major challenge lies in the availability of suitable aircraft for regional operations. India's current regional fleet is largely limited to ATR turboprops, which are efficient on shorter sectors but have speed and capacity limitations, and larger Airbus A320 and Boeing 737 aircraft, which require higher passenger demand to operate economically. Industry observers argue that medium-capacity regional jets carrying between 70 and 120 passengers, such as Embraer E-Jets or the Airbus A220, could better serve growing corridors where demand is too high for turboprops but insufficient for larger narrow-body aircraft.

Experts also highlight the importance of using data-driven planning to identify emerging travel demand. Information from FASTag transactions, railway passenger traffic, airport usage, and GST filings can help identify economic corridors where regional air services are likely to succeed. As India expands its aviation ecosystem through aircraft maintenance, leasing, manufacturing, and systems integration, a stronger regional network could become the foundation for broader industry growth. With infrastructure largely in place, the focus is expected to shift toward building efficient networks that improve connectivity, increase flight frequency, and make air travel more accessible across the country's rapidly developing Tier-2 and Tier-3 cities.

Also Read: Nuclear Body Responds To Data Breach Concerns At India’s Largest Reactor