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Ghost Airports to Fly Again? India's Bold Subsidy Plan Revealed for Billions in Idle Infrastructure!

Transportation

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Updated on 12 Nov 2025, 06:40 am

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Reviewed By

Aditi Singh | Whalesbook News Team

Short Description:

India is set to subsidize airlines for operating flights to dormant airports, aiming to revive "ghost projects" and justify infrastructure spending. This enhancement to the UDAN scheme will provide monthly payments to airlines to cover discounted fares on routes to underused airports, boosting regional connectivity and passenger numbers.
Ghost Airports to Fly Again? India's Bold Subsidy Plan Revealed for Billions in Idle Infrastructure!

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Detailed Coverage:

India is planning a significant move to revitalize its underutilized airports by offering subsidies to airlines that operate flights to these "ghost projects." This initiative, building upon the existing UDAN (Ude Desh Ke Aam Nagrik) scheme, aims to justify the billions invested in infrastructure that has seen little to no passenger traffic. Airlines will receive monthly subsidies to bridge the gap between regular and discounted fares on select routes, with payments also influenced by seat occupancy. The revamped program seeks to boost usage of recently inaugurated airports, some of which have recorded zero passengers despite having complete air and city-side facilities. The government is exploring auction-based and direct incentive options to encourage airline participation. This strategy aims to address the imbalance of congested urban hubs and quiet rural centers, but its success will depend on accurate demand assessments, improved connectivity, and better coordination, potentially through a new federal Transport Planning Authority.

**Impact**: This news could positively impact the Indian aviation sector by providing new revenue streams and route expansion opportunities for airlines. It also has the potential to stimulate regional economic growth and tourism around these airports. However, the government faces financial implications from subsidy payouts, and the ultimate success hinges on realistic demand forecasting and infrastructure coordination. Rating: 7/10

**Difficult Terms**: * **Dormant airports**: Airports that have been constructed but are not currently being used for commercial flight operations. * **UDAN (Ude Desh Ke Aam Nagrik)**: A government scheme in India launched in 2016 to improve regional air connectivity and make air travel affordable for the common citizen. * **Air-side facilities**: Infrastructure directly related to aircraft operations, such as runways, taxiways, and aprons. * **City-side facilities**: Infrastructure that serves passengers and handles ground operations, such as terminals, baggage claim, and check-in areas. * **Federal Transport Planning Authority**: A proposed government body designed to coordinate and align national transportation infrastructure projects to improve efficiency and prevent duplication.


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