The financial sustainability of India’s aviation infrastructure has been brought into sharp focus following an official disclosure that 81 airports managed by the Airports Authority of India (AAI) have collectively accumulated a staggering loss of over ₹10,853 crore in the past decade. This revelation, presented in the Rajya Sabha, underscores a pressing challenge for the nation’s ambitious growth in air travel. A significant portion of this deficit is attributed to airports that have been underutilised or are now entirely non-operational, with a total of 22 facilities having ceased operations. This financial burden on public infrastructure highlights the critical need for a strategic, zero-carbon, and equitable approach to aviation development that ensures every investment serves a tangible purpose for society.
An official statement from the Ministry of Civil Aviation revealed that Delhi’s Safdarjung Airport leads the list of loss-making facilities, with a deficit of over ₹673 crore. While this airport no longer handles commercial flights and is now primarily used for VVIP helicopter movements, its continued financial drain raises questions about the allocation of resources. The list of other top loss-making airports, including Agartala, Hyderabad, Dehradun, and Vijayawada, suggests that the problem of underperformance is widespread and affects a mix of both major and smaller regional hubs. The closure of airports in locations like Muzaffarpur, Thanjavur, and Warangal, many of which have been dormant for years, further illustrates a systemic issue of mismatched infrastructure investment and operational demand.
In a proactive response, the government has intensified its efforts to revitalise this infrastructure through the Regional Connectivity Scheme – Ude Desh Ka Aam Nagrik (RCS-UDAN). Launched in 2016, this initiative is designed to breathe new life into unserved and underserved airports by providing airlines with Viability Gap Funding (VGF) and operational incentives. For the fiscal year 2025-26, a budget of ₹300 crore has been allocated to this scheme, demonstrating a commitment to creating a more balanced and accessible air travel network. The human element of this strategy is paramount; by connecting smaller towns and cities, the UDAN scheme aims to democratise air travel, foster economic growth in remote areas, and bridge geographical divides, all while promoting a sustainable model of air transport.
The success of the UDAN scheme is already tangible, with a total of 92 airports, heliports, and water aerodromes having been made operational so far. This expansion has not only created new travel options for citizens in previously isolated regions but has also laid the groundwork for a more robust and equitable national aviation grid. While the historical losses are a significant concern, the government’s strategic focus on decentralised growth through schemes like UDAN presents a clear path toward transforming these underutilised assets into functional, self-sustaining hubs of commerce and connectivity. This forward-looking approach suggests a move away from the traditional, concentrated airport model toward a more inclusive and decentralised system that serves the larger interests of the country.
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