Indian airlines facing a growing financial squeeze from the West Asia conflict, flight diversions, a weakening rupee and soaring Aviation Turbine Fuel (ATF) prices have sought urgent government intervention to unlock the balance credit sanctioned under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.The Federation of Indian Airlines (FIA), representing Air India, IndiGo and SpiceJet, has written to Civil Aviation Minister Kinjarapu Ram Mohan Naidu seeking the Ministry of Civil Aviation’s intervention with participating banks to ensure that eligible airlines receive the funds without further delay.The demand comes days after ATF prices were raised sharply, with the latest increase of Rs 16 per litre from October 1 taking domestic jet fuel prices to around Rs 137 per litre. ATF prices have now risen for the third consecutive month, adding further pressure on airline finances.In its letter to Naidu, the FIA said the aviation industry was dealing with “unprecedented” financial and operational challenges arising from the continuing West Asia conflict since April 2026, restrictions on airspace and flight diversions, rupee depreciation, rising operating expenses and the steep increase in ATF prices.The association said the combination of these factors had put severe pressure on the liquidity and working capital of airlines, making immediate access to government-backed credit particularly important.The FIA said it appreciated the Government’s initiative to extend credit support through ECLGS 5.0, but pointed out that not all of its members required assistance under the scheme. For those airlines that had applied for the facility and were eligible and willing to avail it, however, the prevailing circumstances warranted speedy disbursal.According to the association, airlines that had sought ECLGS 5.0 assistance had already received part of the amounts sanctioned, but the release of the remaining funds had been delayed in several cases because of continued hesitation by lending institutions.The FIA has therefore asked MoCA to step in and provide participating banks with appropriate guidance and reassurance so that the balance sanctioned amounts can be released, beginning with the first tranche.The association said such disbursal would allow airlines in urgent need of liquidity to meet critical operational and working-capital requirements, sustain their operations and continue providing essential air connectivity.The FIA also sought to put the financial difficulties of airlines in the context of their wider economic role, describing the sector as a key enabler of the Government’s Viksit Bharat 2047 vision.It said airlines were critical to national connectivity, trade, tourism, employment and economic growth, with their financial and operational health having implications well beyond the carriers themselves.The association said the aviation sector also generated substantial indirect employment. Citing its estimate, the FIA said for every person directly employed in aviation, another 6.10 persons were employed in ancillary and allied businesses.“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,” the FIA said.The industry body stressed that its request was aimed at ensuring that airlines which genuinely needed the ECLGS support were not held back by delays at the lending stage.It said timely government intervention would help financially vulnerable member airlines meet their immediate obligations, strengthen their operations and maintain air services at a time when the sector was dealing with an evolving market environment.The FIA further said timely support was critical not only to the financial viability of airlines seeking assistance but also to the aviation ecosystem as a whole, as well as the continued delivery of vital air services in the larger national interest.