By Jitender Bhargava
India’s huge geographical spread notwithstanding, and the fact of J R D Tata having given Indian civil aviation a head-start on 15th October 1932, by operating the maiden flight on Karachi to Mumbai sector, via Ahmedabad, air connectivity till a decade or two ago was largely confined to flights between metros and a few select other premier cities.
The lethargic growth in yesteryears was primarily due to the socialistic thought process of the then policy makers, who regarded aviation as elitist and thus did not accord priority for government investment.
The fact that the aviation industry acts as a catalyst for economic growth was never recognised, even though the International Civil Aviation Organisation (ICAO) data endorsed the widely held view that the output multiplier and employment multiplier were 3.25 and 6.10 times, respectively.
While the fund constraints of the government, with investments in other key industrial sectors like infrastructure, agriculture, education, health, etc., receiving priority, was well appreciated, the ad hocism practised in formulating aviation-related policies was found to be not only unacceptable but also detrimental.
National Civil Aviation Policy
Even though the realisation eventually dawned on the policymakers after the economic reforms in the early 1990s, it took more than 25 years thereafter for a comprehensive national civil aviation policy (NCAP) to be formulated in 2016.
While no one can deny that Indian aviation had in the years preceding the NCAP made some meaningful strides, which included expansion of domestic and international operations, establishment of several new airports and airlines – although at a pace not commensurate with country’s growing demand – there were yet several critical segments needed to make the industry robust that were glaringly overlooked.
NCAP, for instance, helped recognise the reality that though India was ideally situated geographically between the eastern and western hemispheres, it had a strong middle class of about 30 crore Indians and a rapidly growing economy, yet the Indian aviation sector had not achieved the potential it had. The most startling example is of several parts of the country remaining bereft of air connectivity even decades after Independence.
One of the significant achievements of NCAP was the recognition of the need for creation of an eco-system that facilitated harmonized growth of various aviation sub- sectors, i.e Airlines – international, pan-India domestic; and regional; Airports – not just in major cities but in unserved places too, Cargo, Maintenance Repairs and Overhaul services (MRO) – several Indian carriers were sending their aircraft for maintenance abroad. The focus was additionally sought on allied sectors, viz. General Aviation, Aerospace Manufacturing, Skill Development, etc.
Regional connectivity
While earlier the airlines’ networks were predominantly confined to the metros and sub-metros, the Government’s focus began in the past decade on extending the reach so that air travel for ‘desh ka aam nagrik’ in semi-urban areas could be made possible through affordable fares.
Considering that before the 1990s the industry was regarded as elitist and accorded low priority when it came to government investment, but was a top target for taxation, this change in the government’s thinking was both dramatic and significant. One only wished this realization had dawned earlier and the country’s aviation industry had not lagged behind countries which did not even have an airline when Air India started its international operations.
Affordable fares
The task of ensuring affordable fares wasn’t left to the airlines, as any desire for moderate fares on regional routes, covering hitherto under-served or unserved cities, with costs being high, would have been wishful thinking. To ensure that operational costs were substantially lower for regional operations vis a vis other routes operated by domestic airlines, the Central and State Governments and Airport Operators offered incentives, which was another major shift in policy, because earlier the governments considered aviation as a cash cow to boost its income, unmindful of the cost platform with which the airlines were operating and finding operations uneconomical.
Regional connectivity thus began to be treated differently. Not only were the various concessions made available to entice airlines to offer services on these unserved routes, the government because of its unilateral decision to fix indicative airfares – Rs 2500 for about one hour flight (indexed to inflation), airlines provided services on many regional routes are enjoying Viability Gap Finding (VGF). In other words, every operational facet was considered and a solution provided for.
Even if the success in the period since the NCAP was formulated with a focus on regional connectivity, and still a shorter time since operations commenced on regional routes, may not have been as spectacular as one may have wished, the eco-system created has indubitably laid the foundation for a resounding success in the coming years.
In fact, in the recent budget speech, the Finance Minister Nirmala Sitharaman extended the UDAN scheme, which provided for viability gap funding, for another 10 years. This was a tactical endorsement of the government’s policy on regional connectivity and faith in its success.
Four crore passenger target
The Civil Aviation Minister, Mr Kinjarapu Rammohan Naidu, has been equally gung-ho on it. In reply to a question in parliament in March 2025, he said, “In the last 10 years, we have connected 1.5 crore people and in the next 10 years, we want to connect 4 crores more people and bring in 120 new destinations.”
The prime minister, Narendra Modi, has often illustrated the achievements of the aviation sector by citing the stupendous increase in the number of airports – from 74 earlier to almost 150 now, most of them in hitherto relatively unknown cities. If some cities help harness the tourism potential, like the airport at Ayodhya, there will be others that will accelerate the pace of industrial development and exports.
Uttar Pradesh, the most populous state in the country, now boasts 19 airports, with two more in the offing. Little wonder that an airline named Shankh Air is scheduled to begin operations to connect cities in Uttar Pradesh soon.
Likewise, many States with multiple airports are gearing up to provide regional connectivity. Kerala, which has led the country in having the most international airports, will soon have two airlines, Air Kerala, to first provide connectivity within the state and then fly to the Gulf countries. Likewise, another airline, Alhind, is expected to take wings soon. The success of these state-level airlines may lead to a scramble for establishing airlines by other States too. With the convergence of economic growth, creation of airports and airlines, regional connectivity is destined to bring gains for all, particularly people so far devoid of air connectivity.
Multiple options for regional connectivity
While providing air connectivity to under-served and unserved cities with major cities has been an avowed objective, the expansion of regional connectivity will bring multifarious gains for the semi-urban cities. Besides generating avenues for employment, it will give a boost to the economic development of peripheral areas.
As India pursues its attainable dream of becoming the third-largest economy in the next few years, the development of regional connectivity isn’t just being confined to air but to other modes of transportation too. More people are venturing to drive down to destinations 250-300 km away due to improved road infrastructure; more people are exercising the option of trains with railway stations and trains given a huge push in recent years; and even waterways, wherever feasible, are being tapped for transportation. And then, of course, there is connectivity through helicopters, where the terrain is hilly and roads are virtually non-existent.
Will developments related to other modes of transport be a threat to regional connectivity by air? Not really, since the semi-urban cities have hitherto remained unexplored, it needs to be viewed as a case of people getting multiple options rather than different modes of transportation being pitted against each other.
Jitender Bhargava, Former Executive Director, Air India & author of ‘The Descent of Air India’. His next book, Turbulence & Triumph – Story of a corporate executive who remained ethical and defiant to leave a legacy behind – is scheduled for release in May 2025.
