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PHDCCI Hails Rs 5,000 Crore Emergency Credit Support for Airlines Amid West Asia Crisis

PHDCCI has welcomed the government's Rs 5,000 crore emergency credit support scheme for airlines under ECLGS 5.0 to address financial stress from the West Asia crisis. Rajeev Juneja, President of PHDCCI, stated that supporting airline stability will have a cascading positive impact on tourism, trade, and employment. The announcement aligns with PHDCCI's 'Tourism and Hospitality Resilience Report' which highlighted the need for targeted financial support amid geopolitical disruptions. PHDCCI also called for continued policy support including ATF cost rationalization and improved liquidity for tourism MSMEs.

Key Points: PHDCCI Praises Rs 5,000 Crore Airline Credit Scheme

  • Government approves Rs 5,000 crore emergency credit for airlines under ECLGS 5.0
  • PHDCCI hails swift policy response to West Asia crisis impact
  • Scheme aims to stabilize aviation, tourism, and hospitality sectors
  • PHDCCI report recommended financial resilience mechanisms for stakeholders
2 min read

PHDCCI hails government's Rs 5,000 crore emergency credit support for airlines

PHDCCI welcomes government's Rs 5,000 crore emergency credit support for airlines under ECLGS 5.0 to tackle financial stress from the West Asia crisis.

"Aviation is the backbone of tourism, trade and business mobility and supporting airline stability at this juncture will have a cascading positive impact across the broader economy. - Rajeev Juneja"

New Delhi, May 9

PHD Chamber of Commerce and Industry on Saturday welcomed the government's decision to approve a Rs 5,000 crore emergency credit support scheme for airlines under 'ECLGS 5.0' to address the financial and operational stress arising from the ongoing West Asia crisis.

Rajeev Juneja, President, PHDCCI, said, "The Government's swift intervention through the Rs 5,000 crore emergency credit scheme demonstrates strong policy responsiveness towards one of the most critical pillars of India's services economy".

"Aviation is the backbone of tourism, trade and business mobility and supporting airline stability at this juncture will have a cascading positive impact across the broader economy, including hospitality, travel services and employment generation," said Juneja.

The announcement aligns with key recommendations made in the recently released PHDCCI 'Tourism and Hospitality Resilience Report', titled 'Impact of the West Asia Conflict on India's Tourism, Aviation & Hospitality Sectors', which highlighted the urgent need for targeted financial and policy support measures to stabilise India's aviation and tourism ecosystem amid geopolitical disruptions.

The report observed that higher operating costs and limited seat availability could impact inbound tourism demand from long-haul markets such as Europe and North America, where travellers are increasingly sensitive to airfare levels and travel duration.

"The recommendations outlined in the PHDCCI report specifically emphasised the importance of financial resilience mechanisms and liquidity support for aviation and tourism stakeholders during periods of geopolitical uncertainty," said Anil Parashar, Chair-Tourism and Hospitality Committee, PHDCCI.

PHDCCI said that continued policy support in areas such as ATF cost rationalisation, reduction in VAT on aviation fuel, strengthening travel facilitation mechanisms including e-Visas and improving liquidity support for tourism MSMEs will remain important for sustaining India's long-term tourism competitiveness.

"The current geopolitical situation has highlighted the deep interdependence between aviation connectivity and tourism growth. Timely financial support measures such as this will help airlines maintain operational continuity, preserve consumer confidence and minimise disruptions across the travel ecosystem," said Dr. Ranjeet Mehta, CEO and Secretary General, PHDCCI.

- IANS

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Reader Comments

P
Priya S
As someone who travels frequently for work between Mumbai and Dubai, I can feel the pinch. Ticket prices have gone up by at least 40% since the conflict started. This credit support will help airlines keep operations going, but I hope the benefits trickle down to passengers too. The tourism and hospitality sectors are really feeling the heat, especially in places like Goa and Kerala.
R
Rohan X
Good move but why only now? The West Asia crisis has been brewing for months. Our policy response time is still too slow. Meanwhile, small travel agencies and tourism MSMEs are dying without support. The report rightly mentions e-Visas and ATF cost rationalisation - these are the real game changers. Hope the next budget addresses these systematically.
K
Kavya N
I'm a frequent flyer for my export business, and the rising airfare is killing our competitiveness. This credit line is welcome, but let's not forget that airlines need to reduce their own operational inefficiencies too. Some carriers still have terrible on-time performance and customer service. Government should tie this support to performance metrics. Just my two paise 😊
J
James A
Working for an international airline based in Delhi, I can confirm that the West Asia crisis has severely impacted our route profitability. The credit line is crucial, but what about the 3,000+ employees who lost jobs in the sector this year? Need a comprehensive package covering retraining and job creation too. But appreciate the government's intent to stabilise the industry.
S
Siddharth J
The PHDCCI report seems spot on - aviation, tourism, and hospitality

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