The Union Finance Ministry modified the Emergency Credit Line Guarantee Scheme (ECLGS) by increasing the loan limit to Rs 1,500 crore from Rs 400 crore under the scheme. The intervention came as airlines continue to face twin challenges of increased fuel costs and a weaker rupee. While passenger demand has strengthened, higher operating costs have resulted in losses for airlines. The aviation sector was significantly impacted when international and domestic travel was curtailed during the peak of the Covid-19 pandemic. While the pandemic’s effect has been waning, the number of passengers traveling on their flights has not reached pre-pandemic levels as yet. The Finance Ministry’s decision is likely to benefit the financially-beleaguered aviation sector which has been looking for the Centre’s assistance to run their operations.