Air India has warmly welcomed the 10,000 crore fund announced by the central government to stabilize aviation fuel prices. Click for more details.

Air India welcomed the historic decision of the central government

Air India has praised a major decision taken by the central government to strengthen the country’s civil aviation sector. The airline described the announcement of launching a price stabilization fund for Aviation Turbine Fuel as a timely step. According to government sources, this new scheme will provide significant financial support to the Indian aviation industry.

Civil Aviation Ministry and Union Cabinet took a major financial decision

The Union Cabinet on Wednesday decided to cap the price of ATF for domestic flight operations at 75.60 rupees per liter. According to a report, global fuel prices had been continuously rising due to the West Asia crisis.

To address this situation, a price stabilization fund of 10,000 crore rupees has been approved under the leadership of Prime Minister Narendra Modi. This fund will be used to provide subsidies to oil marketing companies so that the financial burden on airlines does not increase. In March 2026, the price of ATF was 60.50 rupees per liter, which increased to 142 rupees per liter by May 2026.

This development comes at a time when international crude oil and aviation fuel prices have increased 2.5 times due to the West Asia crisis. Fuel accounts for about 40 percent of any airline’s operating costs. The Civil Aviation Ministry had been continuously monitoring this volatility.

Important announcement made in the interest of passengers

In addition, the official announcement of this historic decision was made on social media. It was clarified that the burden of this international tension will not be allowed to fall on Indian passengers.

Due to this government assistance, airfares will remain under control in the coming days, and air connectivity across the country will be maintained. Air India has issued an official statement expressing heartfelt gratitude. This welfare measure will improve the financial health of the aviation sector, allowing airlines to provide services more effectively. As operating costs can reach up to 60 percent during fuel price hikes, this relief has come at a critical time.

Planning for oil marketing companies and airlines for the coming period

Specifically, this one-time budgetary assistance of 10,000 crore rupees will be directly transferred to oil marketing companies in the coming days. Under this arrangement, designated Indian airlines operating on domestic and international routes will begin receiving cheaper fuel.

After Air India and other Indian airlines receive this major financial subsidy, will there be any significant reduction in airfares for the general public in the coming days? During this time of global crisis, this step by the central government is certain to save the Indian aviation sector from a major financial crisis.