Budget 2025: Airlines see growth, accessible travel in modified UDAN scheme

Sitharaman, in her speech, said that inspired by that success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in 10 yrs

Airlines on Saturday welcomed the proposal to modify UDAN scheme to provide regional air connectivity to 120 new destinations, saying the move will make air travel more accessible as well as help boost overall economic growth.

Presenting the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman said UDAN (Ude Desh ka Aam Naagrik) has enabled 1.5 crore middle-class people to meet their aspirations for speedier travel.

SpiceJet Chairman and Managing Director Ajay Singh said the budget is forward-looking and middle class-friendly and aims to boost spending and stimulate development.

"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. This initiative will not only make air travel more accessible to remote regions but will also drive economic growth and tourism, further empowering local economies," he said in a statement. 

Regional airline FLY91's MD and CEO Manoj Chacko said UDAN scheme has been a pathbreaking initiative in enhancing regional air connectivity.

"Regional aviation has the potential to be a key driver of growth, connecting underserved cities and unlocking their economic potential. As a pure play regional airline focused on Tier 2 and Tier 3 destinations, we at FLY91 see this as a transformative step that will accelerate air travel accessibility and drive growth across India," he said.

Sitharaman, in her speech, said that inspired by that success, 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," the minister said.

IndiGo CEO Pieter Elbers said the budget has outlined various great initiatives to further develop a future-ready travel ecosystem, with emphasis on people and infrastructure, and aviation as a key enabler.

"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," Elbers said.

Akasa Air CEO Vinay Dube said the budget marks a significant step in supporting the sustained growth of the country'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," he added.

Kinjal Shah, Senior Vice President and Co-Group Head, Corporate Ratings at Icra Ltd, said modified UDAN scheme and airport projects in Bihar will have a positive impact on the Indian aviation sector.

"In addition, development of top 50 tourist destination sites, continued emphasis on spiritual and religious destinations, promotion of medical tourism and introduction of streamlined e-visa facilities with visa-fee waivers will further boost international tourism in India," Shah said.