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India

India Approves $1.05 Billion ATF Fund To Shield Airlines From Fuel Price Surge

Aviation Today News Desk June 4, 2026

New Delhi, India: The Government of India has approved a ₹10,000 crore (approximately US$1.05 billion) Aviation Turbine Fuel (ATF) Price Stabilisation

New Delhi, India: The Directorate General of Civil Aviation (DGCA) has intensified its warning against unauthorized photography and videography inside sensitive areas of airports across India, cautioning passengers that creating reels, vlogs, livestreams, or other social media content in restricted zones could attract serious penalties, including denial of boarding, confiscation of recording devices, and potential inclusion on a no-fly list in severe cases. The regulator's move comes amid a sharp rise in passengers documenting their travel experiences on social media platforms. According to reports, authorities have become increasingly concerned that seemingly harmless travel content may unintentionally capture sensitive security-related information, airport infrastructure, surveillance systems, operational procedures, or restricted facilities that are not meant for public dissemination. Under the restrictions, passengers are prohibited from conducting unauthorized photography or videography in security-sensitive areas of airports. These include security checkpoints, boarding areas, Security Hold Areas (SHA), runway buses, aircraft handling zones, airside operational areas, taxiways, and other restricted sections of airport infrastructure. Authorities say recording activities in such locations could compromise aviation security and operational safety. The DGCA's warning highlights that violations may result in a range of enforcement measures depending on the seriousness of the incident. Security personnel may direct passengers to stop filming, delete recorded material, or surrender devices for inspection. More serious violations could lead to fines, denial of boarding, security investigations, and recommendations for travel restrictions. Media reports indicate that repeat or severe offenders could face action under India's no-fly framework, although authorities have not yet released detailed criteria regarding how such cases would be evaluated. Officials have emphasized that the objective is not to prohibit all photography at airports but to prevent the disclosure of information that could pose security risks. The growing popularity of social media content creation has resulted in an increasing number of videos showing airport operations, security arrangements, access points, screening procedures, and other sensitive infrastructure. Aviation and security authorities believe such material could be exploited if widely circulated online. Airport authorities continue to permit photography in designated public areas where such activities are allowed. Passengers taking selfies or personal photographs in non-restricted terminal spaces are generally not the focus of the restrictions. However, travelers are being advised to carefully follow airport signage and instructions issued by security agencies, airline personnel, and airport operators before recording any content. The DGCA has also reiterated that commercial filming projects, promotional shoots, media productions, and influencer collaborations remain permissible only after obtaining the necessary approvals through authorized channels. Individuals and organizations seeking to conduct professional filming activities at airports must secure prior permissions in accordance with existing aviation and security regulations. The latest warning reflects a broader push by aviation authorities to strengthen security oversight across India's airport network as passenger traffic continues to grow. Regulators are urging travelers to exercise caution when creating content at airports and to avoid filming any area designated as restricted or security-sensitive.

DGCA Warns Passengers Against Filming Reels, Vlogs In Restricted Airport Areas

Aviation Today News Desk June 2, 2026

New Delhi, India: The Directorate General of Civil Aviation (DGCA) has intensified its warning against unauthorized photography and videography inside sensitive

Nagpur, India: Employees of AI Engineering Services Limited (AIESL), a Government of India undertaking under the Ministry of Civil Aviation (MoCA), have launched protests across multiple Maintenance, Repair and Overhaul (MRO) bases over what workers describe as a restrictive internal policy linked to resignations, No Objection Certificates (NOCs), and employee retention. Nearly 180 AIESL technicians reportedly submitted resignations while others stopped work in protest over delays in relieving orders and experience certificates. Employees alleged that the company is delaying resignations, withholding relieving orders, and creating obstacles for staff seeking employment opportunities with other airlines and MRO operators. An AIESL employee, while speaking to Aviation Today alleged that the situation has created “mental harassment” among employees and raised concerns over labour practices within the PSU. The latest unrest began after an internal circular dated May 8, 2026, Base Maintenance Manager (Engg.) for the A-320 Major Maintenance unit, announced stringent conditions for workforce mobility. According to the circular, employees were required to: Procure approval from the AIESL CHRO before applying to external companies Obtain management approval before appearing for interviews or written examinations Route resignation and voluntary retirement cases centrally through the CHRO office Comply with the revised procedure before resignation applications would be processed Employees claim the policy effectively restricts their freedom to pursue better career opportunities. On May 14, 2026, the collective FTE Employees of AIESL submitted a formal representation to the General Manager demanding the immediate withdrawal of this "restrictive policy," alongside long-pending salary revisions, Dearness Allowance (DA), and a transparent career progression matrix. The friction prompted an immediate and stern counter-response from the top executive management; on May 15, 2026, AIESL Chief Executive Officer Sharad Agarwal issued a company-wide warning condemning the emerging labor agitation as an illegal misconduct. Citing historical rulings from the Supreme Court and a specific 2025 Delhi High Court injunction, Agarwal emphasized that PSU workers hold no legal right to strike, warning employees that continuing unauthorized absences would result in the enforcement of a strict "No Work, No Pay" mandate and potential termination of service. Workers argue that their original employment agreements only required them to serve a notice period or pay salary in lieu of notice before resignation. They allege that the new NOC requirement was introduced unilaterally and falls outside their signed contractual conditions. The protests initially gained visibility at AIESL’s Nagpur MRO facility, where employees staged a sit-in demonstration outside the General Manager’s office. The protesting employees mainly include aircraft maintenance technicians, certifying staff, support staff, and engineering personnel working at AIESL’s MRO facilities. Several employees have alleged that the company’s practices violate labour protections and Fixed Term Employment (FTE) norms introduced by the Government of India. Workers claim that despite serving notice periods or offering notice pay, some employees were not issued relieving letters or experience certificates in time, affecting their ability to join new employers. According to employees, the issue is not limited to a few resignations but reflects broader concerns over employee mobility, wages, contractual conditions, and workplace treatment. An employee associated with the protest said workers felt they were being “treated like hostages instead of employees” and accused the management of attempting to prevent skilled manpower from leaving the organisation. The matter has reportedly reached labour authorities in Nagpur. According to aviation industry reports, the Deputy Chief Labour Commissioner’s office in Nagpur clarified that resignation is a legal right of employees and that no employer can forcibly retain a worker once notice requirements have been fulfilled. Employees allege that despite such observations, implementation on the ground remains inconsistent and resignation processing continues to face delays. Industry sources indicate that India’s aviation maintenance sector is witnessing increasing demand for trained aircraft maintenance personnel due to airline expansion, fleet growth, and rising MRO activity. Private airlines and independent MRO operators have reportedly been offering significantly higher salaries and improved career progression opportunities compared to legacy PSU structures. Employees claim many skilled technicians are attempting to move to private aviation firms but are facing delays because relieving documents and approvals are not being issued on time. As of now, AIESL management has not issued a detailed public statement addressing the allegations raised by protesting employees. However, according to media reports, officials within the organisation stated that recent procedures require resignation formalities to be processed centrally through the Delhi headquarters. Some officials reportedly argued that experience certificates were not mandatory because new employers may accept candidates without them. Employees involved in the protest say the demonstrations are being organised collectively by affected technical staff and engineers at various MRO bases. The dispute has reignited discussions within the aviation sector over manpower retention, employment conditions, and the future of technical staffing within aviation PSUs. Employees involved in the protest have appealed for intervention from labour authorities, aviation regulators, media organisations, and the Ministry of Civil Aviation. They maintain that the protest is not only about resignations but also about employee rights, career mobility, and implementation of labour protections within a government-owned aviation engineering company.

AIESL MRO Employee Unrest Grows Nationwide Amid Alleged Restrictive Labour Practices

Aviation Today News Desk May 19, 2026

Nagpur, India: Employees of AI Engineering Services Limited (AIESL), a Government of India undertaking under the Ministry of Civil Aviation (MoCA),

Delhi Slashes ATF VAT From 25% To 7% For Six Months Amid Rising Fuel Costs

Aviation Today News Desk May 18, 2026

New Delhi, India: The Delhi government has reduced the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25 per

India And Airbus Discuss Expanding MRO, Aerospace Manufacturing And Supply Chains

Aviation Today News Desk May 10, 2026

New Delhi, India: Union Commerce and Industry Minister Piyush Goyal held detailed discussions with Airbus India and South Asia President and

New Delhi, India: The Union Cabinet has approved a dedicated ₹5,000 crore emergency credit support window for Indian airlines under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, as carriers grapple with mounting operational and financial pressure arising from the ongoing West Asia crisis. According to the official release issued by the Press Information Bureau (PIB) and the Ministry of Civil Aviation, Indian airlines have come under severe financial stress following a sharp surge in Aviation Turbine Fuel (ATF) prices, airspace restrictions and operational disruptions linked to the geopolitical situation in West Asia. The government said international operations have been particularly affected due to rerouted flight paths, longer flying times, lower aircraft utilisation and increased operating expenses, resulting in short-term liquidity mismatches for carriers. Under ECLGS 5.0, scheduled passenger airlines will be eligible for additional emergency credit support of up to 100% of their peak working capital utilisation during the fourth quarter of FY2025-26, subject to a cap of ₹1,500 crore per borrower. The loans sanctioned under the scheme will carry a seven-year tenure, including a two-year moratorium on principal repayment. The scheme will provide a 90% government guarantee cover on loans extended to airlines and non-MSME borrowers through the National Credit Guarantee Trustee Company Limited (NCGTC), while MSMEs will receive 100% guarantee coverage. The Cabinet said the move is intended to ensure continuity of operations, protect jobs, stabilise supply chains and maintain domestic economic activity amid rising geopolitical uncertainty and elevated crude oil prices. Eligible borrowers under the scheme include MSMEs, non-MSMEs with existing working capital limits and scheduled passenger airlines with outstanding credit facilities as of March 31, 2026, provided their accounts remain standard and non-performing assets are excluded. For MSMEs and other eligible businesses, additional borrowing will be capped at 20% of peak working capital utilisation during Q4 FY26, subject to a maximum of ₹100 crore. These loans will carry a five-year tenure with a one-year moratorium. The government has also waived guarantee fees under the scheme in a bid to accelerate credit flow and encourage banks and financial institutions to lend despite heightened risk conditions. The ECLGS 5.0 facility will remain open for sanctions until March 31, 2027. Information and Broadcasting Minister Ashwini Vaishnaw said the scheme was designed to provide immediate liquidity relief to sectors directly affected by the West Asia conflict and to prevent disruptions to industrial activity and employment. CAPA India described the measure as a major relief for the sector, noting that the government had already taken steps to secure ATF supplies and reduce operational costs before extending direct credit support. Market reaction remained positive following the announcement. Shares of InterGlobe Aviation, parent company of IndiGo, and SpiceJet gained after investors responded favourably to the liquidity support package. The latest ECLGS iteration marks the fifth version of the emergency credit programme originally introduced during the COVID-19 pandemic under the Atmanirbhar Bharat initiative to provide collateral-free, government-backed loans to stressed businesses. While industry bodies welcomed the move, some economists and market observers cautioned that extended moratoriums and large-scale guaranteed lending could create future repayment and credit discipline risks if geopolitical instability persists longer than expected. The announcement comes as India faces broader economic risks from volatile global oil prices, trade disruptions and reduced regional aviation efficiency linked to the escalating conflict in West Asia.

India Approves ₹5,000 Crore Emergency Credit Window For Airlines Amid West Asia Crisis

Aviation Today News Desk May 7, 2026

New Delhi, India: The Union Cabinet has approved a dedicated ₹5,000 crore emergency credit support window for Indian airlines under the

New Delhi, India: India’s aviation sector has issued a fresh urgent appeal to the Centre seeking immediate intervention on aviation turbine fuel (ATF) pricing, just two days ahead of the scheduled fuel price revision, as escalating costs threaten the financial viability of airline operations. The representation has been made by the Federation of Indian Airlines (FIA), which represents major carriers including Air India, IndiGo and SpiceJet. In a formal communication to the Ministry of Civil Aviation, the body flagged that the industry is facing severe financial stress due to sustained increases in fuel costs. In one of the strongest warnings in recent years, the FIA stated that the airline industry in India is under extreme stress and is on the verge of closing down or stopping operations. In its April 26 letter, the industry body further cautioned that urgent intervention is required to continue airline operations. In its letter to MoCA, the FIA wrote: “In order to ensure uninterrupted operation of airlines within India, FIA earnestly requests the Ministry’s urgent intervention to review the ATF cost challenges in consultation with the relevant Ministries and stakeholders and also respectfully request the Government to extend the same fuel pricing mechanism uniformly across both domestic and international operations as was done in the past with the establishment of Crack (margin) Band. Applying the same framework consistently will ensure parity, reduce the financial burden and enable Indian airlines to compete more effectively with global counterparts.” The immediate trigger for the alarm is the sharp rise in ATF prices, which have now crossed ₹2 lakh per kilolitre in recent revisions, driven by global crude oil volatility linked to geopolitical tensions in West Asia. This marks a steep escalation from earlier in April, when ATF prices in Delhi rose 8.5% to ₹1,04,927 per kilolitre, up from ₹96,638.14. Airlines have also highlighted disparities between domestic and international fuel pricing, noting that while domestic ATF price increases were capped at ₹15 per litre, international operations faced a significantly higher increase of ₹73 per litre. The FIA has pointed to a dramatic shift in airline cost structures, noting that ATF, which earlier accounted for 30-40% of operating costs, has now surged to 55-60% of total expenses. This sharp increase has compressed margins, made several routes particularly international sectors financially unviable, and intensified cash flow pressures across airlines. Carriers have also stated that they are struggling to absorb rising costs, especially in markets where pricing flexibility remains limited due to intense competition. In its submission, the FIA has sought both immediate relief and long-term structural reforms. Among the immediate measures requested are the temporary removal of the 11% excise duty on ATF and a reduction in state-level value-added tax (VAT), which can go up to 25% in Delhi and as high as 29% in Tamil Nadu. The industry body has also called for the introduction of a transparent and predictable pricing mechanism, including the reinstatement of a “crack band” system with a refining margin range of USD 12–22 per barrel to stabilise fuel costs. Airlines have further mentioned a pricing mismatch in the ATF ecosystem, pointing out that fuel prices remain elevated even when global crude oil prices soften, due to high refining margins or “crack spreads.” This disconnect, they say, has made route planning, pricing strategies and capacity deployment increasingly challenging. The current surge in fuel prices is largely attributed to global developments, including geopolitical tensions in West Asia that have pushed crude oil prices higher and raised concerns over critical supply routes such as the Strait of Hormuz. Additionally, airspace restrictions linked to regional conflicts have increased operational costs, particularly for long-haul international flights. Airlines have warned that if fuel prices remain elevated, the industry may be forced to rationalise routes, reduce capacity and increase airfares. While carriers have so far absorbed part of the cost increase, industry executives indicate that this approach is not sustainable in the long term. As a result, passengers could soon face higher ticket prices, reduced flight frequencies and limited connectivity on marginal routes. The FIA has emphasised that the issue has now moved beyond rising costs to a broader concern over the viability of airline operations in India. With the next ATF price revision imminent, the industry’s latest appeal reflects mounting financial pressure and signals one of the most critical stress phases for Indian aviation since the pandemic, placing urgent focus on government intervention.

Air India, IndiGo And SpiceJet Issue ATF Price SOS To Govt, Warn Of Shutdown Risk

Aviation Today News Desk April 29, 2026

New Delhi, India: India’s aviation sector has issued a fresh urgent appeal to the Centre seeking immediate intervention on aviation turbine

New Delhi, India: India has formally allowed the blending of sustainable aviation fuel (SAF), ethanol and other synthetic hydrocarbons into aviation turbine fuel (ATF), marking a significant regulatory shift aimed at reducing emissions and lowering dependence on imported crude oil. The move follows an amendment to the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001, issued by the Ministry of Petroleum and Natural Gas under the Essential Commodities Act. The revised framework expands the legal definition of ATF to include not only conventional hydrocarbons but also blends incorporating synthetic and renewable components. With the amendment now in force, India has effectively granted legal recognition to SAF and other alternative aviation fuels, allowing their integration into the country’s aviation fuel ecosystem for the first time. The updated rules define ATF as a mixture of hydrocarbons conforming to IS 1571 standards or blends with synthetic hydrocarbons under IS 17081 specifications, enabling the inclusion of newer, cleaner fuel variants. The notification also aligns enforcement provisions with updated criminal procedure laws, modernising the regulatory framework governing fuel marketing and distribution. Despite enabling SAF blending, the government has not introduced mandatory blending requirements at this stage. However, India has already outlined a phased roadmap for SAF adoption in international aviation: 1% blending by 2027 2% by 2028 5% by 2030 No targets have been specified for domestic flights so far, indicating a gradual, phased transition strategy. The policy aims to address two major strategic priorities: decarbonisation and energy security. India currently relies heavily on crude imports, with a significant portion of aviation fuel derived from fossil sources. By enabling SAF blending, the government seeks to reduce emissions while diversifying fuel sources and lowering import dependence. Globally, SAF is produced from renewable feedstocks such as waste oils, agricultural residues, municipal waste and even captured carbon, offering a lower lifecycle carbon footprint compared to conventional jet fuel. The move positions India alongside global efforts to decarbonise aviation under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) led by the International Civil Aviation Organisation (ICAO). CORSIA will become mandatory for most countries from 2027, requiring airlines to offset emissions above 2020 levels and accelerating the adoption of cleaner fuels such as SAF. Several countries, including the UK and Japan, have already introduced SAF blending mandates, and India’s regulatory update signals its intent to align with these international trends. While SAF offers environmental benefits, it remains more expensive than conventional jet fuel, posing cost challenges for airlines in the near term. However, policymakers expect that scaling domestic production particularly using ethanol and alcohol-to-jet pathways could improve cost competitiveness over time and create new opportunities in India’s biofuel sector. Industry stakeholders also view the move as a critical first step that enables investment, production capacity development and long-term fuel transition planning. The latest amendment does not mandate immediate operational changes for airlines but establishes the legal and regulatory foundation required for SAF adoption in India’s aviation sector. By bringing alternative aviation fuels under the formal definition of ATF, the government has removed a key regulatory barrier, signalling a long-term transition toward cleaner aviation fuel systems.

India Legalises SAF Blending In Jet Fuel, Expands ATF Definition In Major Policy Shift

Aviation Today News Desk April 24, 2026

New Delhi, India: India has formally allowed the blending of sustainable aviation fuel (SAF), ethanol and other synthetic hydrocarbons into aviation

New Delhi, India: India’s maintenance, repair and overhaul (MRO) sector is set for sustained growth, with the market expected to reach $5.7 billion by 2030, up from an estimated $4.4 billion in 2025, according to a study report by Alan Lim and Joshua Ng, Directors of Singapore-based Alton Aviation Consultancy and aviation industry veterans. The report estimates a compound annual growth rate of about 5.4 percent, supported by rapid fleet expansion, increasing passenger traffic, and ongoing policy support aimed at strengthening the country’s aviation ecosystem. India’s commercial aircraft fleet is projected to expand significantly, crossing 1,800 aircraft by 2030. The growth will be led by narrow-body aircraft, which are expected to nearly double in number from over 700 currently to more than 1,300 within the decade. Beyond MRO growth, India is advancing a broader aerospace ecosystem to sustain long-term aviation expansion. “The government has set ambitious targets to expand domestic passenger traffic, increase the number of operational airports, and strengthen workforce and manufacturing capabilities, supported by large scale investments in airport infrastructure and new greenfield developments,” said Lim. Ng added, “Special economic zones, including GIFT City, are being positioned to anchor aircraft leasing.” Airlines in India have also placed substantial aircraft orders, with over 500 deliveries expected in the next five years, indicating a steady rise in maintenance demand across the aviation value chain. India’s airport infrastructure expansion continues to gather pace, with Navi Mumbai International Airport already operational since December 2025 and Noida International Airport set to begin operations in 2026, offering initial capacities of 12 million and 20 million passengers annually, respectively. Further capacity additions are underway with Dholera International Airport, targeted for completion by December 2026, and Bhogapuram International Airport, expected by June 2026, backed by significant planned investments. The study highlights that engine maintenance will contribute nearly half of the total MRO demand, making it the dominant segment in the market. At the same time, airframe maintenance and modification services are expected to witness the fastest growth during the forecast period. Global and domestic players are accelerating investments in India’s MRO ecosystem. Safran has inaugurated a €200 million LEAP engine MRO facility in Hyderabad to strengthen next-generation engine overhaul capabilities. IndiGo, in collaboration with Bengaluru International Airport, has also begun developing a dedicated MRO facility to support its growing fleet. Meanwhile, Thales has expanded its presence with a new avionics MRO facility, while the Adani Group has strengthened its position in the sector through the acquisitions of Air Works and AAR-Indamer Technics. Higher aircraft utilisation and increased flight frequencies are likely to drive more frequent maintenance cycles, particularly for engines and structural components. The government’s ongoing push to expand aviation infrastructure is expected to play a critical role in supporting the sector. Plans to develop over 100 additional airports in the coming years are set to take the total number of airports in India to more than 200 by 2030. This expansion, along with improved regional connectivity and continued growth of low-cost carriers, is expected to sustain long-term demand for MRO services. The report notes that recent policy measures including tax rationalisation, liberalised foreign investment norms, and initiatives to strengthen aircraft leasing and financing are improving the overall operating environment for MRO providers in India. These reforms are aimed at enhancing cost competitiveness and encouraging global players to establish or expand their MRO operations in the country, while reducing dependence on overseas facilities.

India’s MRO Market To Reach $5.7 Billion By 2030 Driven By Rapid Fleet Expansion

Aviation Today News Desk April 11, 2026

New Delhi, India: India’s maintenance, repair and overhaul (MRO) sector is set for sustained growth, with the market expected to reach

India Sees 11 Airline Exits Since 2016 Amid Financial Stress, Structural Challenges

Aviation Today News Desk April 4, 2026

New Delhi, India: At least 11 airlines have exited India’s aviation sector since 2016, the government informed Parliament, focusing on the

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India

India Approves $1.05 Billion ATF Fund To Shield Airlines From Fuel Price Surge

DGCA Warns Passengers Against Filming Reels, Vlogs In Restricted Airport Areas

AIESL MRO Employee Unrest Grows Nationwide Amid Alleged Restrictive Labour Practices

Delhi Slashes ATF VAT From 25% To 7% For Six Months Amid Rising Fuel Costs

India And Airbus Discuss Expanding MRO, Aerospace Manufacturing And Supply Chains

India Approves ₹5,000 Crore Emergency Credit Window For Airlines Amid West Asia Crisis

Air India, IndiGo And SpiceJet Issue ATF Price SOS To Govt, Warn Of Shutdown Risk

India Legalises SAF Blending In Jet Fuel, Expands ATF Definition In Major Policy Shift

India’s MRO Market To Reach $5.7 Billion By 2030 Driven By Rapid Fleet Expansion

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