New Delhi, April 28: The Centre is considering a ₹5,000-crore credit support scheme for the aviation sector under the Emergency Credit Line Guarantee Scheme (ECLGS), as part of a broader ₹2.5 lakh crore relief package to cushion industries impacted by ongoing geopolitical tensions.
According to reports, airlines may be allowed to access government-backed loans with a cap of around ₹1,000 crore per carrier. The scheme is expected to run for five years, with a possible extension, and could offer up to a 90% sovereign guarantee on loans.
The proposed support comes amid rising global uncertainties, including the US-Iran conflict, which has increased volatility in aviation turbine fuel prices and disrupted sector economics. Aviation remains particularly sensitive to fuel cost fluctuations and international supply chain risks.
The relief plan is part of a wider government effort to stabilise sectors affected by geopolitical disruptions and sustain economic momentum.
Separately, the Ministry of Civil Aviation recently released the second phase of DGCA-approved Flying Training Organisation (FTO) rankings for April 2026, aimed at improving transparency, safety, and training standards. The ranking framework was introduced under the guidance of Civil Aviation Minister Ram Mohan Naidu.
In another supportive measure, the government had earlier announced a 25% reduction in landing and parking charges for domestic airlines at major airports to help keep airfares affordable amid rising fuel costs.
