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India may offer $100 billion financing opportunity for aircraft leasing: report


India, one of the largest aviation markets in the world, has the potential to finance up to $100 billion in aircraft leasing segment over the next 20 years, a consultancy said Thursday.

Primus Partners said about 80 percent of the country’s total commercial fleet is leased compared to 53 percent globally.

“With the growing passenger traffic, India’s demand for aircraft is predicted to reach around 2,100 in the next 20 years. A supportive and favorable aviation ecosystem with sufficient focus on the domestic lease industry can boost India’s ability to tap the $100 billion financing opportunity in the next 20 years,” it said in a release.

The consultancy also released a report titled “Aircraft Leasing Industry: Has India Nailed the Landing?”

Currently, domestic airlines finance their aircraft leases primarily through Ireland, Singapore and Hong Kong.

Primus Partners noted that international leasing involves redirecting Indian funds abroad, which is another factor that should push the government to take the necessary steps to establish a thriving leasing ecosystem in India.

“There is an urgent need to streamline processes and regulations, with Gujarat International Finance Tec-City International Financial Services Center (GIFT IFSC) holding sufficient potential to become the face of aircraft leasing in India,” it added.

The report also proposed strategic and final actions to boost the aircraft leasing industry, estimated to be worth more than $150 billion globally.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.