India holds first high-level committee meeting on aircraft leasing and financing

Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu chaired the first meeting of the High-Level Committee (HLC) on Aircraft Leasing and Financing to address bottlenecks in India’s expanding aviation sector. While India is operationalizing a new airport every 45 days, the availability of aircraft remains a primary constraint, as over 85% of Indian carriers' fleets are currently leased.

To build a globally competitive ecosystem, the committee discussed taxation, regulatory frameworks, financing availability, and ease of doing business. Naidu suggested exploring mechanisms for increased bank credit allocation to the sector and identifying joint ventures for technical and skill development in aircraft leasing.

Efforts to boost lessor confidence through the International Financial Services Centre (IFSC) have already resulted in 422 assets—including 250 aircraft and 87 engines—being leased, alongside 474 signed leasing agreements.