Centre Mulls Rs 5,000 Crore Airline Relief Amid Geopolitical Tensions: Report

(MENAFN- IANS) New Delhi, April 27 (IANS) The Centre is considering a Rs 5,000 crore credit support scheme for the aviation sector as part of a broader relief package aimed at cushioning industries impacted by ongoing geopolitical tensions, according to a report.

NDTV Profit reported that the proposed scheme is likely to be rolled out under the Emergency Credit Line Guarantee Scheme (ECLGS) framework, with the government working on an expanded package of around Rs 2.5 lakh crore to support multiple affected sectors.

According to sources cited in the report, airlines may be allowed to access the government-backed credit line through the ECLGS route, with a credit cap of around Rs 1,000 crore per airline.

The scheme is expected to run for five years, with a possible extension, and may offer up to a 90 per cent government guarantee on loans extended under the facility.

The proposed airline relief plan forms part of a wider crisis support framework being worked out by the government to mitigate the economic impact of global uncertainties, it added.

The move comes as rising geopolitical tensions, including the ongoing US-Iran conflict, continue to weigh on key sectors such as aviation, which remains sensitive to fuel price volatility and global disruptions.

Earlier this month, the Ministry of Civil Aviation released the second phase of DGCA-approved Flying Training Organisation (FTO) rankings for April 2026, indicating an overall improvement in training standards, with one institute entering the top 'A' category.

The ranking framework -- developed under the guidance of Civil Aviation Minister Ram Mohan Naidu -- aims to enhance transparency, accountability, and safety standards across flying training institutes in the country.

In a separate decision, the minister had also announced a 25 per cent cut in landing and parking charges for domestic airlines at major airports to keep airfares affordable amid rising jet fuel prices linked to the Middle East conflict.

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