India Aircraft Leasing and Financing Summit-2025
Source: The Hindu, Aircraft financing
The India Aircraft Leasing and Financing Summit was held at GIFT City, Gandhinagar, Gujarat, organized by the Union Ministry of Civil Aviation in collaboration with FICCI and IFSCA.
Summit Highlights
Axis Bank became the first Indian bank to transact aircraft financing at GIFT City IFSC.
GIT City is emerging as India's first aircraft leasing hub.
Traditionally, India was dependent on multinational banks for aircraft financing.
GIT City is emerging as an alternative to global leasing hubs like Dublin and Singapore.
Key benefits of GIFT City for aviation finance:
Dependence on foreign leasing centres is reduced.
Economic benefits from India's aviation sector will be brought back to India.
Growth of India's aviation sector:
India is now the third largest domestic aviation market in the world.
UDAN Yojana: Extended for 10 years, aims to add 4 crore passengers and develop 120 new destinations.
Airport expansion: Currently: 149 airports are operational.
An additional 50 new airports are planned by 2029-30.
By 2047: Total 350 airports, including 34 mega airports that will be able to handle 2 crore passengers per year.
Importance of aircraft leasing in India:
Aircraft leasing is a legal agreement under which an airline or other operator leases an aircraft from a leasing company for a fixed period.
It is a popular way for airlines to acquire aircraft without buying them outright.
Current status of India's airline fleet: 800 aircraft in operation.
Target: 1,500 aircraft in next 5 years.
GIFT City (Gujarat International Finance Tec-City)
It is India's first International Financial Services Centre (IFSC), located in Gandhinagar, Gujarat.
A Special Economic Zone (SEZ) with world-class financial infrastructure. Regulated by IFSCA (International Financial Services Centres Authority).
Why is GIFT City important for aviation finance?
It is attractive to global investors as there are no foreign exchange restrictions.
Low tax rates and regulatory benefits for financial services firms.
Topic Related Videos ⬇️
UDAN Yojana
UDAN Yojana, also known as Regional Connectivity Scheme, is a scheme launched by the Government of India that aims to develop regional airports and make air travel more affordable.
Key objectives of UDAN Yojana:
Development of regional airports: To revive and re-energise underutilised and non-operational airports.
Making air travel affordable: To reduce air fares for passengers in regional areas by subsidising airlines.
Enhance connectivity: To establish air connectivity between under-served and under-served airports.
Krishi Udan Yojana:
To promote connectivity by air to facilitate transportation of agricultural produce.
Some important points under the UDAN scheme:
• Maximum fare for fixed-wing aircraft:
There is a maximum fare cap of ₹2,500 per hour of flight for 50% of seats.
• Maximum fare for helicopter services:
The maximum fare has been fixed at ₹2,500 for each 30-minute leg of flight.
Krishi Udan Yojana 2.0: Focus is on transportation of perishable food products from hilly areas, north-eastern states and tribal areas.
58 airports are covered under the Krishi Udan Yojana.
Ministries involved in Krishi Udan Yojana:
Ministry of Civil Aviation, Department of Agriculture and Farmers Welfare, Department of Animal Husbandry and Dairying, Department of Fisheries, Ministry of Food Processing Industries, Department of Commerce, Ministry of Tribal Affairs.
Topic Related Videos ⬇️
