India Aviation Sector Seeks Urgent Govt Relief to Continue Operations

April 29, 2026 - India’s major airlines, including Air India, IndiGo and SpiceJet, have issued an urgent SOS to the government seeking immediate financial intervention because of the crises faced by the airline sector.

This shout for help was sent out by the Federation of Indian Airlines (FIA) which said in its letter, “In order to survive, sustain and continue operation, we request your urgent intervention for immediate and meaningful financial support to tide over the current situation,” adding that the airlines were in a “very difficult, precarious and challenging situation”.

The aviation sector has warned that it is “on the verge of stopping operations” owing to rising costs in what is being described as one of the most serious financial crises in recent years.

News reports highlight that the aviation industry is under “extreme stress” and may cut flights or shut routes. As relief measures, the airlines want the government to temporary suspend 11% excise duty on ATF for domestic routes, change fuel pricing mechanisms and cut VAT rates in key States.

The main reason for the crises is the sharp spike in jet fuel prices because to the global oil shocks following the US-Iran related conflict in the Middle East.

The crisis is not just Indian but global. However, India’s airlines are hit harder because of high taxes on jet fuel (ATF) compared to other countries, currency pressure because they are paying for fuel in dollars and airspace closure issues which is forcing longer routes.

Source: Media Reports

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