Civil Aviation Minister Ram Mohan Naidu chairs High Level Committee on Aircraft Leasing and Financing

The first meeting of the High-Level Committee (HLC) on Aircraft Leasing and Financing was held under the chairmanship of Union Minister of Civil Aviation Shri Ram Mohan Naidu.

Objective:
Build a robust, globally competitive aircraft leasing and financing ecosystem in India.

Background:
- First Aircraft Leasing Summit (2023) → industry suggested ratification of the Cape Town Convention → led to the Protection of Interests in Aircraft Objects Act.
- Second Summit (2024) → industry suggested forming a High-Level Committee → now convened for the first time.

Current Status:
- 422 assets leased via IFSC (250 aircraft, 87 engines).
- 474 leasing agreements signed — showing growing lessor confidence.

Discussion Points
- Legal & Regulatory: Address risks with clear frameworks; explore GAAR clarity and DTAA renegotiation with Ireland.
- Financing: Greater allocation of bank credit; potential for rupee-denominated financing.
- Skill Development: Joint ventures for technical expertise in leasing.
- Ease of Doing Business: Simplify taxation, regulatory processes, and approvals.

Strategic Importance
- India’s aviation sector is expanding rapidly — an airport operationalized every 45 days.
- With 85% of Indian carriers’ fleets leased, strengthening the leasing ecosystem is critical to ensure aircraft availability.
- Predictable policies will attract global lessors, reduce costs, and improve connectivity for passengers.

Broader Impact
- For Airlines: Easier access to aircraft, reduced financing hurdles.
- For Investors: Transparent, globally aligned ecosystem with reduced risk.
- For Passengers: More aircraft → better connectivity, more choices, and improved affordability.
- For India: Reinforces its emergence as a global aviation hub.

This meeting signals a time-bound, coordinated push to make India a serious player in global aircraft leasing — a sector traditionally dominated by hubs like Dublin and Singapore.