3 hrs ago
Airlines Urge Government to Unlock Delayed ECLGS Funds
Some Indian airlines say they need money quickly to keep their services running.
They applied for loans through a government-backed programme called ECLGS 5.0.
The Federation of Indian Airlines says some lenders have been slow to release money that was approved.
It asked the Civil Aviation Ministry to guide and reassure those lenders.
The federation says conflict in West Asia and other rising costs have made it harder for airlines to manage their money.
SpiceJet and Akasa Air had received a first part of the support.
The aviation minister said SpiceJet’s remaining funding had to be worked out with its bank.
FIA says timely support could help airlines keep operating and connecting people and places.
The Federation of Indian Airlines (FIA) asked the Civil Aviation Ministry to help speed up release of remaining sanctioned ECLGS 5.0 funds.
FIA said participating lenders had delayed disbursements in several cases, despite airlines’ urgent liquidity needs.
The federation cited the West Asia conflict, airspace restrictions, flight diversions, rupee depreciation, rising operating costs and higher aviation turbine fuel prices.
SpiceJet and Akasa Air had received the first tranche; Civil Aviation Minister K. Ram Mohan Naidu said SpiceJet received Rs 150 crore and its remaining funding depended on the airline and its bank.
FIA said timely support could help eligible airlines sustain operations and air connectivity, and cited an estimate of 6.10 additional allied-sector jobs per aviation employee.
- Who
- The Federation of Indian Airlines, eligible airlines seeking ECLGS 5.0 support, participating lenders and the Civil Aviation Ministry.
- What
- FIA urged the ministry to help expedite release of remaining sanctioned credit under ECLGS 5.0.
- Where
- India.
- When
- FIA’s letter was dated October 1, 2026; the article was published October 5, 2026.
- Why
- FIA says conflict-related disruption and rising costs have strained airlines’ liquidity and working capital.
FIA and Airlines
Government Position
Releasing sanctioned funds
FIA and Airlines
FIA says lender hesitation has delayed remaining sanctioned amounts and asks the ministry to provide guidance and reassurance so eligible airlines can access funds promptly.
Government Position
Minister K. Ram Mohan Naidu said the government made the scheme available, but obtaining further funds was a matter for the company and its lender.
Government role
FIA and Airlines
FIA calls for immediate government support, citing pressure on airline liquidity and the importance of maintaining operations and connectivity.
Government Position
Naidu pointed to limits on government intervention in private airlines and said the ministry was engaging with SpiceJet to examine how it could facilitate matters.
Key facts
- Programme
- ECLGS 5.0, a government-backed credit programme approved in 2026.
- FIA request
- Guidance and reassurance for participating banks to facilitate release of sanctioned funds.
- Lenders and guarantee
- Participating lenders provide loans, with government-backed guarantee cover from the National Credit Guarantee Trustee Company.
- First tranche
- SpiceJet and Akasa Air had received the first tranche under ECLGS.
- SpiceJet funding
- The minister said SpiceJet had received Rs 150 crore; the remaining funding had to be worked out between the airline and its bank.
- Pressures cited
- West Asia conflict since April 2026, airspace restrictions, flight diversions, rupee depreciation, rising operating costs and higher aviation turbine fuel prices.
- Employment estimate
- FIA cited an estimate of 6.10 additional jobs in ancillary and allied businesses for every person employed in aviation.
Quotes
Federation of Indian Airlines (FIA)
Federation representing airlines and communicating the sector’s concerns.
“This would enable airlines desirous of availing the scheme and in urgent need of liquidity to meet critical operational and working-capital requirements, sustain their operations and continue providing essential air connectivity to the nation.”
businesstoday.in
“The financial and operational sustainability of Indian airlines is therefore vital not only to the aviation sector but also to the wider economy and the Government's vision of Viksit Bharat 2047.”
businesstoday.in
Sources
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