July 16, 2023
3 min

Aircraft addition: Indian government appeasing lessors, says research firm - BusinessLine

Indian airlines, including Air India and IndiGo, have made significant aircraft orders at the Paris Air Show, but the question remains as to how these aircraft will be financed. Leasing is expected to play a major role, with 74% of the total Indian fleet currently being leased. However, until recently, India was not an accommodating place for aircraft lessors. India is now drafting a bill to enforce the Cape Town Agreement, which streamlines the repossession of aircraft in foreign jurisdictions, making it more attractive for lessors. The use of leasing allows airlines to achieve better purchase prices and reduces initial cash outlay. However, greater profitability and growth for Indian operators could be impacted if cost of leasing and terms and conditions reflect the risks. A national legislation is needed to provide a win-win opportunity for all stakeholders for hassle-free leasing and repossession of aircraft.

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Adhikansh Gupta
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Writer and editor who covers the latest trends and innovations in the software-as-a-service (SaaS) industry