Dhaka, April 28 -- India is considering a INR 5,000 crore financial support package for its aviation sector as global tensions and rising fuel prices continue to strain airline operations.

The proposed plan would provide credit support to airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), with government guarantees covering up to 90 percent of the loans. Each airline could access funding of up to INR 1,000 crore, helping them manage escalating costs and maintain operations during uncertain conditions.

The move comes as jet fuel prices surge amid geopolitical instability, including tensions involving the United States and Iran. Since fuel is one of the largest expenses for airlines, the increase has significantly squeezed...