Decoding: Aircraft Leasing at the International Financial Services Centre (IFSC)

Abstract

This article explores the framework of aircraft leasing in India, the benefits and the challenges that India faces to become the favorable destination for the leasing companies. In doing such analysis, an overview has been taken from the laws and regulations of Ireland, as to why it has become the preferred destination for the lessors. Further, the IFSC framework has been discussed which is at the forefront of the idea of inviting lessors onshore and making investments in the GIFT city. The few of hurdles faced by the lessors have also been discussed and the response and receptiveness of the government on the same has been analyzed. With the IFSC framework in place and an ever so growing aviation market, India looks poised to play a lead role.

Keywords: Aircraft, Aircraft leasing, leasing, lease, IFSC, Kingfisher, Jet airways, Tax holiday, Gift city, SEZ, DGCA, lessor, lessee, airline, airline company