New Delhi, October 5, 2026 (Yes Punjab News)
Indian commercial airlines have sought the Civil Aviation Ministry’s intervention to expedite the release of credit sanctioned by banks under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, citing mounting financial and operational pressures arising from the continuing conflict in West Asia.
The Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, has written to Civil Aviation Minister Ram Mohan Naidu, highlighting the impact of airspace restrictions, flight diversions and rising aviation turbine fuel (ATF) prices on airline finances.
“These developments have severely strained airline liquidity and working capital, necessitating immediate Government support,” the FIA said in its letter.
According to the industry body, airlines that applied for credit under ECLGS 5.0 have received only part of the sanctioned assistance in several cases, while lending institutions have delayed disbursing the remaining amounts.
The FIA urged the Ministry of Civil Aviation (MoCA) to provide appropriate guidance and reassurance to participating banks to facilitate timely release of the balance sanctioned credit, particularly for airlines facing financial vulnerability.
It said faster disbursement would help airlines meet critical operational and working-capital requirements, sustain their services and maintain air connectivity across the country.
The industry body said timely support was critical to safeguarding the financial viability of airlines that have sought assistance under the scheme.
The Union Cabinet approved ECLGS 5.0 in May 2026 to support airlines, MSMEs and other businesses affected by the West Asia conflict and help protect jobs. The scheme has a total outlay of Rs 18,100 crore and is aimed at unlocking additional credit of up to Rs 2.55 lakh crore, including a Rs 5,000-crore allocation for the aviation sector.
Under the scheme, the government provides a 90 per cent credit guarantee through the National Credit Guarantee Trustee Company Limited (NCGTC), without a guarantee fee. Eligible scheduled passenger airlines can raise additional credit of up to 100 per cent of their peak credit outstanding between January and March 2026, subject to a cap of Rs 1,500 crore per borrower across the banking system.
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