Nagpur Flight Cuts Threaten City’s Logistics Hub Ambitions

thenewsdirt
Aug 13
6 min read

The skies over Nagpur have become noticeably quieter in recent months, as multiple flight routes that once connected the Vidarbha region to key destinations across the country have vanished from airport departure boards.

The cancellation of services to Kolhapur, Lucknow, Nashik, and several other cities has exposed deeper structural challenges threatening Nagpur's aspirations to emerge as India's premier logistics hub.

Star Air's recently launched Nagpur-Kolhapur service, which began operations in May 2024 with considerable fanfare, lasted merely two months before being suspended in August. The route, operating three times weekly on Mondays, Fridays, and Sundays, was particularly significant for pilgrims travelling to the Mahalaxmi Temple in Kolhapur. However, poor passenger response and inadequate bookings forced the airline to halt operations until the end of August, with no confirmation of resumption thereafter.

The Kolhapur cancellation represents the fourth such route discontinuation from Nagpur in recent months. IndiGo Airlines had earlier suspended flights to Nashik and Lucknow, citing operational challenges, while the carrier also discontinued its Nagpur-Chhatrapati Sambhajinagar service in March 2025. Star Air simultaneously ended its three-year-old Nagpur-Belgaum route in April 2025, as government subsidies under the UDAN scheme expired.

These developments mark a concerning pattern for Nagpur's aviation connectivity. According to official parliamentary data from the Ministry of Civil Aviation, Maharashtra has experienced multiple UDAN route discontinuations since 2020. The state has lost fixed-wing routes, including Nagpur-Nanded services operated by Ghodawat Airlines, which were part of the Regional Connectivity Scheme designed to improve air access to smaller cities.

Structural Challenges Emerge Across Indian Aviation

The flight cancellations affecting Nagpur reflect broader systemic issues plaguing India's aviation sector.

The collapse of Go First Airlines in May 2023 removed a significant player from the market, while capacity constraints have forced remaining carriers to rationalise their operations.

IndiGo, India's largest airline, currently has over 65 aircraft grounded due to Pratt & Whitney engine issues, severely limiting its ability to maintain comprehensive route networks.

SpiceJet, another major carrier, has faced similar challenges with approximately 40 per cent of its fleet grounded due to financial constraints and maintenance issues. These capacity limitations have resulted in airlines withdrawing from less profitable routes, particularly those connecting tier-2 and tier-3 cities like Nagpur to smaller regional destinations.

Aviation industry data reveals that smaller cities across India registered significant passenger traffic declines in the first quarter of 2024. Nagpur experienced a 12 per cent drop in passenger numbers, translating to approximately 93,000 fewer travellers compared to the same period in the previous year. The decline is particularly pronounced when compared to other regional hubs like Hyderabad, which recorded 9.5 per cent growth during the same period.

The passenger exodus has been attributed to multiple factors, including substantially increased airfares, runway restrictions due to delayed recarpeting work, and limited airline options.

Travel industry sources indicate that airfares from Nagpur have often exceeded those from competing hubs like Hyderabad for similar destinations, creating a pricing disadvantage that drives passengers to alternative airports.

UDAN Scheme Failures and Regional Connectivity Decline

The Regional Connectivity Scheme, launched in 2016 to improve aviation access to underserved regions, has struggled to maintain sustainable operations. Of the 887 valid routes awarded under the UDAN programme since its inception, 222 have been discontinued since 2020.

Maharashtra alone has witnessed the termination of multiple routes, including several connecting Nagpur to other regional centres.

The scheme's challenges stem from fundamental viability issues. Many UDAN routes operate on three-year government subsidies, after which airlines must sustain services commercially. When subsidies expire, carriers frequently withdraw from routes that fail to generate sufficient passenger demand or revenue.

The Nagpur-Belgaum service exemplifies this pattern, operating successfully for three years under UDAN support before being discontinued when subsidies ended.

Airport infrastructure limitations compound these operational challenges.

Nagpur airport has issued notices restricting runway usage for recarpeting work that has yet to commence, creating uncertainty for airline scheduling.

The restrictions have reportedly deterred airlines from expanding operations or maintaining existing services, as operational reliability becomes compromised.

Current flight operations at Nagpur remain heavily dependent on IndiGo Airlines, which operates the majority of services. Air India maintains only one daily flight, while Star Air connects to four or five destinations.

This limited airline presence restricts competition and passenger choice, further undermining the airport's appeal as a regional hub.

Impact on Logistics Hub Aspirations

The declining flight connectivity poses significant challenges to Nagpur's ambitions of becoming a national logistics centre.

The Multi-modal International Cargo Hub and Airport at Nagpur project, conceived as a transformative infrastructure initiative, relies heavily on robust aviation connections to fulfil its cargo hub mandate.

Data from the Airports Authority of India reveals that international cargo handled by Nagpur airport declined by nearly 60 per cent in the financial year ending March 2024.

The airport processed merely 81 metric tonnes of international cargo compared to 205 tonnes in the previous year, representing just 0.012 per cent of cargo handled by all six joint venture international airports in India.

The cargo decline undermines the fundamental premise of the MIHAN project, which envisioned Nagpur as a global cargo redistribution centre leveraging its central geographic location. International airlines were expected to use Nagpur as a midway point for cargo redistribution, but limited flight connectivity has prevented this vision from materialising.

Industry experts emphasise that successful logistics hubs require comprehensive transportation networks encompassing both passenger and cargo services.

The reduction in passenger flights inevitably impacts cargo capacity, as significant freight volumes traditionally travel in the belly holds of passenger aircraft.

Without diverse airline partnerships and frequent flight services, Nagpur struggles to compete with established cargo hubs in Mumbai, Delhi, and Bengaluru.

The Maharashtra government has acknowledged these challenges through various policy initiatives, including the 2024 Logistics Policy that designates Nagpur as a National Logistics Hub. However, policy announcements require operational implementation, and declining aviation connectivity hampers practical progress toward these objectives.

Administrative challenges further complicate Nagpur airport's operational environment. The airport is managed by Mihan India Limited, a joint venture between Maharashtra Airport Development Company and the Airports Authority of India. Responsibility for critical infrastructure improvements, including runway maintenance, has become entangled in jurisdictional disputes between these entities.

The delayed runway recarpeting project exemplifies these coordination problems. While MIL issues operational restrictions to airlines, actual maintenance work falls under AAI's purview.

The resulting delays and uncertainties create an unfavourable environment for airline operations, encouraging carriers to allocate aircraft to more reliable airports.

GMR Group's planned takeover of airport operations offers potential solutions to these management challenges. The Supreme Court's September 2024 ruling cleared legal obstacles to GMR's involvement, paving the way for comprehensive airport modernisation.

However, the transition process remains ongoing, leaving current operational issues unresolved.

Flight schedule data indicates that airlines have responded to infrastructure uncertainties by reducing frequency or eliminating routes. The summer 2024 schedule saw multiple service suspensions that were not restored when seasonal constraints ended, suggesting that operational concerns rather than temporary factors drive these decisions.

Economic Implications for Vidarbha Region

Economic Implications of flights cancelled in Nagpur for Vidarbha Region — Economic Implications for Vidarbha Region

The aviation connectivity decline carries broader economic implications for the Vidarbha region, which has historically struggled with industrial development despite its central location. Reduced flight services limit business travel options, potentially deterring investment and economic activity.

Tourism, particularly wildlife tourism centred around nearby national parks, depends significantly on convenient air access.

Foreign tourists typically require direct or connecting flights to reach Nagpur, but service reductions force travellers to use alternative airports, reducing regional tourism revenue.

The situation creates a self-reinforcing cycle where reduced connectivity limits economic development, which in turn reduces passenger demand, justifying further service cuts. Breaking this cycle requires coordinated efforts to restore airline confidence while simultaneously developing demand through economic growth initiatives.

Manufacturing and export-oriented businesses in Vidarbha face particular challenges when aviation connectivity declines. These enterprises often require reliable cargo services and business travel options that become compromised when airlines reduce operations.

The result is a competitive disadvantage compared to regions with superior transportation infrastructure.

Several logistics companies have established operations in the Vidarbha region, including facilities along the Samruddhi Expressway corridor. However, these investments depend partly on multimodal connectivity that includes aviation services. Reduced flight operations undermine the integrated transportation networks that modern logistics operations require.