International Finance Services Centres Authority (IFSCA) and GIFT City (Gujarat International Finance Tec-City), which intend to make India an aviation financing and aircraft leasing hub, are facing solid headwinds not only in terms of attracting foreign lessors or foreign banks but also the Indian commercial airlines to the platform.
Indian commercial airlines have a fleet of more than 710 aircraft and more than 80 percent of them are on lease with most of them leased through global financial hubs like Dublin or Singapore.
Even though it’s too early to write off GIFT City and must not make a mistake of not seeing the govt of India’s intention behind the formation of the same, aviation stakeholders note that there is more for the govt to do regarding clearing the ambiguity like the permanent establishment clause, how customs procedures would be or how airlines can benefit while lending through GIFT City or extending more incentives to both airlines and lessors to do the business through the platform rather than say Dublin.
0 comments:
Post a Comment