During the recent West Asia crisis, Naidu said the government introduced measures such as capping ATF prices, limiting increases in airport charges, extending credit support to airlines, and creating a ₹10,000-crore fund to manage fuel price volatility.Civil Aviation Minister Kinjarapu Ram Mohan Naidu has said that the Centre now treats civil aviation as a priority sector and is willing to step in when required to protect the industry’s operational and financial stability during external disruptions, according to an exclusive interview published by The Hindu Business Line.Naidu said the government’s handling of the recent West Asia crisis showed how the aviation sector is receiving strategic policy support, given its growing role in the economy and its importance for a large number of Indian travellers.
The minister said the government is closely monitoring the sector and taking necessary steps to maintain stability. He added that the Centre’s intervention helped protect Indian airlines from the financial strain experienced by several global carriers following disruptions in the Middle East.During the crisis, the government introduced multiple measures to support the sector. These included capping Aviation Turbine Fuel prices, restricting increases in airport landing and parking charges, extending the Emergency Credit Line Guarantee Scheme to airlines, and setting up a ₹10,000-crore Price Stabilisation Fund to manage fuel price volatility.Naidu also said the Centre worked with state governments to reduce VAT on ATF, especially at major aviation hubs, in order to bring down airline operating costs. He said the government’s view was that all stakeholders needed to contribute when the sector faced stress, bringing oil marketing companies, airports, financial institutions and State governments into the stabilisation effort.
According to the minister, aviation’s expansion over the past decade has made it an important pillar of India’s economic growth. He said the sector is now closely connected with the aspirations of the common citizen, which is why the government considers it a priority area.
Aviation’s new economic weight
India currently has around 165 airports and about 800 aircraft in operation. Daily passenger traffic has crossed the five-lakh mark, which Naidu described as the new normal.
The minister further said that the modified UDAN regional connectivity scheme will play a central role in the next phase of aviation growth. He noted that a significant part of the sector’s progress over the last decade came through UDAN, and that achievements once seen as exceptional have now become standard, making it necessary to plan for the future.
Naidu said the revised version of the scheme has been developed after studying the feedback and outcomes of the past 10 years. He added that it is not just an extension of the earlier scheme, but a more comprehensive programme designed to provide stronger support to airlines and expand regional connectivity.The modified UDAN scheme, approved with an outlay of around ₹29,000 crore, extends Viability Gap Funding for airlines on regional routes from three years to five years on a tapered basis. It also raises the minimum weekly flight requirement from seven to 14, provides operations and maintenance support for smaller airports, and plans the development of 100 airports through a challenge-mode framework.
Naidu said the revised framework is expected to improve the long-term viability of regional routes, encourage airlines to expand services to Tier-II and Tier-III cities, and support the Centre’s long-term aviation goals.
Alongside regional connectivity, the government is also working on aircraft manufacturing, domestic maintenance, repair and overhaul capabilities, seaplane operations, and airport-led economic ecosystems as part of its larger aviation strategy.
