Fly91 Launches Vijayawada Flights Under Modified UDAN Scheme

Regional airline Fly91 commenced operations from Vijayawada International Airport (VGA) on April 10, launching a new service on the Hyderabad-Vijayawada-Hyderabad sector. The inaugural flight marks a key step in the carrier's expansion and is one of the first to launch under the recently approved Modified UDAN scheme, a government initiative designed to bolster regional air connectivity across India.

The launch signifies the tangible rollout of the government's renewed focus on developing aviation infrastructure in Tier-2 and Tier-3 cities. The new service increases the total number of flights on the busy Vijayawada-Hyderabad corridor to 9 daily flights, according to the Airports Authority of India (AAI), providing passengers with greater choice and potentially more competitive fares. The airline will operate the route using its fleet of ATR 72-600 turboprop aircraft.

The Modified UDAN Scheme's Broader Impact

An inaugural ceremony at Vijayawada Airport was attended virtually by Union Civil Aviation Minister K Rammohan Naidu. The Minister highlighted that Fly91's expansion into Vijayawada and Rajahmundry underscores the success and continued importance of the Ude Desh ka Aam Naagrik (UDAN) program. He stated that the confidence shown by airlines like Fly91 contributed to the government's decision to extend and expand the program.

On March 25, 2026, the Union Cabinet approved the Modified UDAN scheme with a total outlay of ₹28,840 crore for a 10-year period. A significant portion of this budget, ₹12,159 crore, is allocated over the next eight years specifically to develop 100 airports from existing unserved airstrips. This investment is central to India's long-term goal of increasing its operational airport count from 165 to 350 by 2047. The scheme provides airlines with Viability Gap Funding (VGF), a subsidy mechanism that makes operating on less-trafficked regional routes financially feasible.

The original UDAN scheme, launched in October 2016, successfully operationalized 663 routes across 95 airports and carried over 16.2 million passengers, demonstrating the viability of the regional connectivity model that Modified UDAN now aims to scale significantly.

Fleet Strategy and Market Implications

Fly91's strategy aligns with a broader industry trend of using fuel-efficient turboprops for regional expansion. The airline operates a fleet of 6 ATR 72-600 aircraft leased from Dubai Aerospace Enterprise (DAE). Fly91's Managing Director and CEO, Manoj Chacko, noted that the new routes provide reliable travel options while supporting the growing demand in emerging regional markets.

The entry of Fly91 impacts several key stakeholders. For passengers in Andhra Pradesh and Telangana, it introduces more frequent and competitive travel options. For Fly91, it expands its network to 11 destinations, utilizing subsidized routes to increase aircraft utilization. For lessors like DAE and manufacturer ATR (Aerei da Trasporto Regionale), it reinforces the strength of the Indian regional market. However, some aviation industry analysts have noted that the long-term financial sustainability of regional carriers can become challenging once the standard three-year VGF subsidy period for a given route concludes.

What Comes Next

Following the launch, Fly91 management has confirmed it will ramp up frequencies on its new routes starting April 17, 2026. On a national scale, the Ministry of Civil Aviation expects the development of the 100 new airports from unserved airstrips to be completed over the next eight years, by 2034. This infrastructure development is a critical component of the government's long-term vision to have 350 operational airports by 2047.

Why This Matters

This route launch is more than a single new service; it represents the operational start of India's next major push in aviation infrastructure. It validates the public-private partnership model of the UDAN scheme, where government subsidies enable private airlines to build out connectivity to smaller cities. The success of carriers like Fly91 will be a key indicator of whether this multi-billion dollar investment can successfully decentralize India's air traffic away from congested metro hubs.