India's Ambitious Leap into Aircraft Leasing: Building Hubs for a Soaring Future

India is ramping up efforts to develop a robust aircraft leasing ecosystem, with Gujarat's Gift City already leasing 200 planes. The government aims to lower leasing costs and expand airline fleet to enhance competition, potentially reducing airfares. By implementing laws aligning with international standards, leasing costs may drop by 8-10%.

India is making strides in creating a formidable aircraft leasing ecosystem, with Gujarat's Gift City proving instrumental by leasing 200 planes, Civil Aviation Minister Ram Mohan Naidu announced in the Lok Sabha. This move is pivotal for fostering competition and potentially reducing airfares.

The minister emphasized the government's commitment to broadening the aircraft leasing market, which could attract new airline fleets and lower operational costs. By ratifying the Cape Town Convention, leasing costs might decrease by 8-10%, a reduction that could eventually benefit passengers with more affordable airfares.

The aviation sector in India has expanded significantly, with aircraft numbers soaring from 340 in 2014 to 840, alongside orders for 1,700 more. The government encourages new airlines to enter the market, driven by the UDAN scheme, enhancing connectivity and competition across the nation.

(With inputs from agencies.)