New Delhi [India], October 5 : The Federation of Indian Airlines (FIA), representing Air India, IndiGo and SpiceJet, has written to Civil Aviation Minister Ram Mohan Naidu seeking his urgent intervention for the expeditious disbursement of credit support to eligible member airlines under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
In its letter, FIA said the Indian aviation industry was facing "unprecedented financial and operational challenges" due to the continuing conflict in West Asia since April 2026, airspace restrictions and flight diversions, rupee depreciation, rising operational costs and a sharp increase in aviation turbine fuel (ATF) prices.
"These developments have severely strained airline liquidity and working capital, necessitating immediate Government support," FIA said.
The industry body said airlines play a critical role in national connectivity, trade, tourism, employment and economic growth, adding that the sector's financial and operational sustainability was important for the wider economy and the government's vision of Viksit Bharat 2047.
FIA said it appreciated the government's initiative to extend credit support under ECLGS 5.0, while noting that not all its members required credit under the scheme.
It said airlines that had sought credit under the scheme had received a portion of the assistance sanctioned, but the release of the balance amounts had been delayed in several cases due to "continued hesitation" on the part of lending institutions.
"Therefore, it is imperative that MoCA facilitates the timely release of funds under the ECLGS 5.0 scheme, particularly for member airlines that remain financially vulnerable and have applied for the immediate liquidity support provided by ECLGS 5.0 to sustain and strengthen their operations," FIA said.
The federation requested the Ministry of Civil Aviation to provide appropriate guidance and reassurance to participating banks to facilitate the release of the balance sanctioned amounts, beginning with the first tranche under ECLGS 5.0.
FIA said timely disbursement would help airlines meet critical operational and working-capital requirements, sustain their operations and continue providing air connectivity across the country.
"Timely support at this juncture is critical to help safeguard the financial viability of member airlines that have sought support under the ECLGS 5.0 scheme, at the same time protecting the aviation ecosystem and ensuring the continued delivery of vital air services in the larger national interest," it said.