Regional airports struggle as UDAN subsidies end — Wheels down

Regional airports struggle as UDAN subsidies end — Wheels down

Various airports in Karnataka are currently grappling with the maintenance of regular flight schedules impacted by several factors

Of the 42 routes selected in the state under the Centre’s Ude Desh ka Aam Naagrik (UDAN) scheme, only 11 were operational as of Jan 2026. Of the 11 operational routes, six continued to receive support, while only five survived beyond the subsidy period. Aircraft movements at Kalaburagi, Hubballi, Mysuru and Belagavi fell from 13,180 in 2021-22 to 5,372 in 2024-25 — a 59.2% drop. Passenger traffic declined from 4.9 lakh to 3.3 lakh. Kalaburagi, built at a cost of over Rs 175 crore and inaugurated in Nov 2019, saw passenger numbers fall from 79,143 in 2022-23 to 30,924 in 2024-25. Services were suspended in Oct 2025 after airlines withdrew, citing poor occupancy and the end of UDAN support. The airline’s schedule lists daily Bengaluru-Kalaburagi flights until Dec 31, 2026. MB Patil, industries and infrastructure development minister, revealed Karnataka spent Rs 1,000 crore on Kalaburagi airport before handing it over to the Centre, without revenue accruing to the state. Bengaluru services, suspended in Dec 2023, resumed in April 2025 with state support but were suspended again in April 2026. Star Air’s published schedule shows flights to Bengaluru four days a week until Dec 31. Shivamogga’s Rashtrakavi Kuvempu Airport, inaugurated in Feb 2023, has emerged as a prominent example of the subsidy problem. Aircraft movements rose from 817 in 2024-25 to 1,400 in 2025-26. However, IndiGo withdrew its Bengaluru service in May and SpiceJet stopped operations in June 2026. Star Air, the last remaining operator, has stopped accepting bookings beyond Nov 20, when the three-year UDAN support ends. The airport’s licence was renewed for three years after payment of a Rs 20 lakh DGCA penalty, while night-landing work was planned. As of Aug 2025, IndiGo operated only to Hyderabad and Chennai. Belagavi’s passenger traffic fell 7.6% to 1.5 lakh in Jan-June 2026, while aircraft movements declined 9.1% to 2,154. The airport, which earlier connected 13 cities, served five destinations in Aug. However, cargo movement increased nearly 2.5 times to 11.3 tonnes. Hubballi, despite infrastructure upgrades costing about Rs 385 crore, faces inadequate flight frequency and the withdrawal of subsidised routes. Vijayapura is targeting flight operations by the end of Jan 2027, while Ballari’s proposed airport has been delayed, prompting the state to examine a common facility for Ballari, Vijayanagara and Koppal.

Aviation expert B Vishwanath said the state must now offer a sustainable funding model, draw airlines, improve route planning and night-landing facilities, and assess demand realistically so that airports do not become underused assets. BENGALURU: The push to improve regional air connectivity is facing a stiff test, with several airports struggling to sustain regular flights despite investments running into hundreds of crores. The end of central subsidies, thin passenger loads, inconvenient schedules and limited airline interest have exposed difficulties in making regional aviation commercially viable. Thirty-one became inactive after completing the three-year viability gap funding (VGF) period. Star Air subsequently resumed Bengaluru services with state assistance. Bidar experienced similar disruptions. Mysuru has struggled to retain airlines despite its tourism and commercial potential. The Mysuru-Bengaluru expressway has weakened demand on the route. Jindal Vidyanagar Airport near Hampi, meanwhile, has a daily Bengaluru connection operated by Star Air, but needs links to more cities to tap its tourism potential. Meanwhile, several greenfield projects are in the works. Raichur and Hassan airports have also faced construction and funding delays.

“Kalaburagi flights have resumed with 80% of funding from Kalyana Karnataka Region Development Board and 20% from the state. The Centre rejected our proposal to extend UDAN support from three to five years, followed by five years of 50:50 funding by Centre and state. Subsequently, 17 airports across the country became non-operational.

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“We will operate Shivamogga, Raichur and Vijayapura airports ourselves,” minister Patil said. Our new policy will aim to make regional aviation sustainable and serve as a model for other states. Mangaluru airport has been handed over to the Adani Group and Hubballi is being privatised. “- MB Patil, minister for industries and infrastructure development. Download the TOI App.

“The comprehensive civil aviation policy, to be placed before the cabinet at the next meeting, will cover grants, VGF and operating models for state-managed airports.

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