The Indian government is planning to extend an emergency credit programme of around ₹4,000 crore to support domestic airlines facing financial stress.
The move comes as carriers struggle with operational disruptions linked to tensions in West Asia, which have significantly impacted flight routes and schedules.
Under the proposal, airlines may receive loans backed by sovereign guarantees of up to ₹1,000 crore each, with an additional ₹500 crore available if promoters match the investment.
The aviation sector has been hit by rising fuel costs and reduced international traffic, especially on key Middle East routes that account for a major share of revenues.
Indian carriers have already cancelled thousands of flights due to airspace restrictions and geopolitical uncertainties, putting pressure on cash flows and operations.
This rare intervention by the Centre aims to stabilize the aviation sector, ensure continuity of services, and prevent further financial strain on airlines during a challenging global environment.
