To quote India's civil aviation minister: "By
positioning India as a competitive aircraft leasing hub, GIFT City
is unlocking a USD 5 billion annual
opportunity-reducing leasing costs by 10-15%, enabling nearly 80%
of our fleet to operate on lease, and driving India's emergence
as a global aviation financing centre."
Approximately 85% of Indian airline fleets are leased from
global leasing hubs such as Ireland and Singapore. This leasing
model enables airlines to circumvent substantial upfront capital
expenditures, maintain liquidity for core operational needs, and
strategically expand their fleets without incurring significant
debt burdens.
While leasing offers clear advantages to airlines, it is also a
high-margin business for lessors. Despite being capital-intensive,
aircraft leasing firms typically procure aircraft directly from
manufacturers such as Airbus and Boeing at substantial discounts,
facilitated by bulk purchasing. These aircraft are then leased
