The government is weighing a series of relief measures for airlines as the prolonged US-Iran conflict continues to pressure the aviation sector through higher operating costs and weaker passenger demand, a Times of India report said on Monday.
Among the key proposals is a Rs 5,000 crore Emergency Credit Line Guarantee Scheme (ECLGS), which could be cleared this week and offer crucial support to financially stressed carriers, the report said.
The aviation ministry is also working to secure approval for the Hotan route through China, a move that would help Air India operate westbound flights while bypassing Pakistani airspace. The Times of India said this could reduce fuel costs for the airline by avoiding longer diversion routes. Efforts are also underway to seek relief on jet fuel excise duty as base fuel prices remain elevated.
These steps follow an earlier 25% cut in landing and parking charges at 34 major airports for three months from April 8, along with partial relief in jet fuel price hikes for domestic airlines during the current month. The Times of India said the industry is seeking an extension of that support into May.
Airlines with stronger balance sheets have told the government that continued cost pressures may force flight reductions, potentially resulting in fewer services and higher ticket prices. Weaker carriers, meanwhile, face the risk of shutting operations, which could hurt connectivity and employment, the report added.
Under the proposed ECLGS, assistance may be capped at Rs 1,500 crore per airline. Ministry officials told The Times of India that while IndiGo would qualify under the scheme, it may not require the funding due to its relatively stronger financial position.
27/04/2026 Moneycontrol
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