India, one of the world’s largest aviation markets, has an opportunity to provide financing of up to $100 billion in the aircraft leasing segment over the next 20 years, an advisory firm said on Thursday.
Primus Partners said around 80 per cent of the total commercial fleet is on lease in the country, compared to 53 per cent globally.
“With increasing passenger traffic, the demand for aircraft in India is projected to reach around 2,100 over the next 20 years. An enabling and conducive aviation eco-system with adequate focus on the domestic leasing industry will provide India with a financing potential of $100 billion. may inspire us to tap into the opportunity. over the next 20 years,” it said in a release.
The advisory firm has published ‘Aircraft Leasing Industry: Has India Nailed the Landing?’ Also released a report titled.
Currently, domestic carriers primarily charter their aircraft through Ireland, Singapore and Hong Kong.
Primus Partners said leasing internationally means Indian money is redirected overseas, which is another factor prompting the government to take necessary steps to set up a thriving leasing ecosystem in India Is.
It added, “Gujarat International Finance Tec-City International Financial Services Center (GIFT IFSC) has substantial potential to become the face of aircraft leasing in India with a dire need to streamline processes and regulatory environment.”
The report also suggested strategic and definite measures to boost the aircraft leasing sector, which is estimated to be worth over $150 billion globally.
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