The correct answer is option 3, which means both statement 1 and 2 are correct. Let`s dissect each statement to understand why it is correct.

Statement 1: "It is an innovative scheme to develop the regional aviation market."

This statement is correct. The Ude Desh ka Aam Nagrik (UDAN) scheme is indeed an innovative scheme introduced by the Government of India to develop the regional aviation market. Under this scheme, smaller airports and unserved or under-served routes are connected to the mainstream aviation network. This helps in improving connectivity and accessibility in remote areas, promoting tourism, and creating economic opportunities.

Statement 2: "It creates affordability yet economically viable and profitable flight on regional routes."

This statement is also correct. One of the main objectives of the UDAN scheme is to make regional air travel more affordable for the common citizens, while also ensuring that the flights on regional routes are economically viable and profitable for the airlines. This is achieved by providing financial incentives and subsidies to the participating airlines, which helps in keeping the airfare affordable for the passengers while ensuring the sustainability of the operations.

Therefore, both statements 1 and 2 are correct, and the correct answer is option 3.