Air India has welcomed the Centre's ₹10,000-crore fund to help keep aviation fuel prices stable, saying it will provide much-needed support to the aviation sector and help airlines maintain connectivity during a period of high fuel price volatility.
The airline said the decision would enable airlines to serve passengers more effectively, and the government's commitment to strengthening connectivity for the people of India.
The Cabinet approved a one-time support package to help keep ATF (aviation turbine fuel) prices stable for scheduled Indian airlines, following a sharp increase in global aviation fuel prices linked to the ongoing war in West Asia.
The government will provide up to ₹10,000 crore in interest-free support to oil companies to help keep ATF prices stable when global fuel prices rise.
The scheme will be open to all Indian airlines operating domestic and international flights, and will help airlines manage fuel costs by offering more stable ATF prices and protecting them from sudden price spikes.
