The Government of India is preparing to roll out an emergency credit programme worth around ₹4,000 crore to support domestic airlines amid the ongoing crisis triggered by the Iran war. This rare financial assistance aims to stabilize airline operations facing severe disruptions and rising costs.
Under the proposed scheme, the Centre will provide sovereign guarantees for loans of up to ₹1,000 crore per airline. Carriers may also access additional funding of ₹500 crore, provided promoters invest an equal amount. The move is intended to ease liquidity pressure while ensuring airlines continue operations during this turbulent period.
Indian airlines have been significantly impacted by airspace restrictions and geopolitical tensions, leading to over 10,000 flight cancellations and longer international routes. These disruptions have increased fuel consumption and operational costs, putting financial strain on carriers across the sector.
The relief package is expected to particularly benefit financially stressed airlines like SpiceJet, while also supporting overall industry stability. The government’s intervention reflects the urgent need to protect India’s aviation sector and maintain connectivity during ongoing global uncertainties.