ARC NEWS
India approves $1 billion fund to stabilise jet fuel prices
June 04, 2026
India's government has approved an allocation of Rs100 billion ($1.04 billion) that will allow oil companies there to provide "price stabilisation" for jet fuel used by Indian carriers on both domestic and international services. The Ministry of Civil Aviation states that the fund will provide interest-free advances to oil companies to compensate for their "losses arising from elevated international [jet fuel] prices whenever the prevailing Import Parity Price exceeds the benchmark price determined under the approved mechanism." The advances will allow oil companies to adopt fixed pricing for jet fuel on both domestic and international operations, extending a capped pricing mechanism that applies for fuel used on domestic services. "This intervention will bring significant relief to airlines by reducing uncertainty in fuel costs and will ultimately benefit our passengers through reduced airfare[s]," says civil aviation minister Ram Mohan Naidu. The fund will operate for three years, with the advances to be repaid once jet fuel prices moderate. While not supporting airlines directly, it is the second intervention that the Indian government has made aimed at addressing the impact of the Iran war on jet fuel prices. In May, Delhi created a RS50 billion pool of credit support under its Emergency Credit Line Guarantee Scheme to allow airline borrowers to access additional bank funding due to the effects of the Iran war.


Airbus completes first A350-1000ULR flight
June 03, 2026
Airbus has completed a first flight with the A350-1000ULR variant in development for Qantas. The aircraft (MSN707) flew with an Airbus crew of two test pilots and four engineers for 3:43h and reached an altitude of slightly above 41,000ft before returning to Toulouse, the airframer says. It notes that MSN707 is the first of 12 A350-1000ULRs ordered by Qantas and is currently equipped with flight test instrumentation. It will be retrofitted for commercial operation after the test campaign. Airbus estimates that the flight test campaign will take two months. The A350-1000ULR features an additional rear-centre fuel tank designed to increase range by 1,000nm to 9,700nm and flight times of up to 22h. The airframer additionally intends to certificate during the campaign a new galley air cooling system with lighter and more efficient refrigeration units. Qantas intends to use the A350-1000ULR for nonstop flights from Australia's east coast to Europe and the US East Coast in a four-class layout with 238 seats. It is now scheduled to receive its first aircraft in April 2027. That aircraft will be the second A350-1000ULR, Airbus says. It will come out of the paint shop in coming days and subsequently receive its engines and finishing work for its cabin interior, the airframer adds. Airbus previously introduced an ultra-long-range variant of the A350-900.


​UK aims to strengthen passenger rights with new rules
June 03, 2026
The UK government has introduced new legislation intended to modernise the aviation sector, including by strengthening passenger protections and improving the efficiency of national airspace. The Civil Aviation Bill, currently undergoing its second reading in parliament, would give the Civil Aviation Authority enhanced enforcement powers while overhauling regulation of the UK's skies. Under the proposed laws, airlines and airports could face fines if they fail to properly compensate passengers for cancelled flights, provide adequate support during delays or ensure accessible services for disabled travellers. The measures are designed to ensure passengers receive assistance including food, accommodation and clear information during disruption. UK passenger rights are currently governed by UK261, officially retained in UK law as the Air Passenger Rights Regulation 2004. When the nation left the European Union, it essentially copied the bloc's EU261 passenger rights regulation directly into UK law. While it functions almost identically to the EU regulation, it is operated independently under the oversight of the CAA. The proposed new legislation is also aimed at accelerating long-planned airspace modernisation, allowing flightpaths to be redesigned to reduce delays and improve efficiency. By cutting congestion, the government aims to deliver faster journeys and lower emissions while accommodating future growth. "As UK airspace approaches 70 years since its original design, these changes are critical to accommodate growing passenger numbers and reduce avoidable delays," says the Department for Transport. "Without this reform, passengers could face delays increasing by 200% by 2040, which is why UK ADS [Airspace Design Service] has already begun redrawing London routes, with changes planned for the mid-2030s." The bill also includes provisions to streamline aviation safety rulemaking, enabling the UK to respond more quickly to new technologies and emerging risks. Tim Alderslade, chief of industry group Airlines UK, has welcomed the legislation's emphasis on enabling growth in the UK industry, but warns that "new rules must strike the right balance and deliver real consumer benefits" as "unnecessary burdens help no one". He adds: "We look forward to shaping this legislation with government as it progresses through parliament."


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.