The Federal Government has proposed a 30-day credit facility for domestic airlines to ease the impact of rising aviation fuel costs.

The initiative will allow operators to access Jet A1 fuel and defer payment, reducing immediate financial pressure on airlines struggling with high operating expenses.

The proposal was discussed at a stakeholders’ meeting involving regulators, airline operators, and fuel marketers, aimed at finding urgent solutions to the fuel supply challenge.

In addition, authorities are pushing for direct supply arrangements between marketers and airlines to improve efficiency and lower costs.

The move comes amid concerns that escalating jet fuel prices could disrupt flight operations, with the government seeking to stabilise the aviation sector and avert potential service interruptions.