The Centre is contemplating a Rs 5,000 crore credit support scheme for the aviation sector to aid industries affected by ongoing geopolitical tensions. The proposed scheme is likely to be implemented under the Emergency Credit Line Guarantee Scheme (ECLGS) framework, with the government planning an expanded relief package of about Rs 2.5 lakh crore for various impacted sectors.
Sources mentioned in a report stated that airlines might access the government-backed credit line through the ECLGS route, with each airline having a credit cap of approximately Rs 1,000 crore. The scheme is anticipated to have a duration of five years, with a potential extension, and could provide up to a 90 per cent government guarantee on loans granted under the facility.
This airline relief plan, part of a broader crisis support framework being devised by the government, aims to alleviate the economic repercussions of global uncertainties. The aviation sector, sensitive to fuel price fluctuations and international disruptions, has been particularly affected by escalating geopolitical tensions, including the ongoing US-Iran conflict.
The Ministry of Civil Aviation recently released the second phase of DGCA-approved Flying Training Organisation (FTO) rankings for April 2026, signaling an overall enhancement in training standards. The ranking system, overseen by Civil Aviation Minister Ram Mohan Naidu, seeks to boost transparency, accountability, and safety standards in flying training institutes nationwide.
In a separate development, the minister announced a 25 per cent reduction in landing and parking charges for domestic airlines at major airports to maintain affordable airfares amidst escalating jet fuel prices associated with the Middle East conflict.
