Civil Aviation Minister Ram Mohan Naidu on Friday said that GIFT City, or Gujarat International Finance Tech-city-based International Financial Services Centre, will aid the industry to develop a “competitive aircraft leasing hub.”
Speaking at the “India Aircraft Leasing and Financing Summit” in Gandhinagar in Gujarat, Naidu said, “GIFT City will give India’s aviation sector the further required confidence, commitment, and collaboration to develop a competitive aircraft leasing hub.”
Naidu’s comments assume significance since the majority of commercial aircraft in India are leased. There are another 1,700 aircraft on order.
As of now, airlines in India depended on lessors based out of Ireland or Dubai amongst other places.
Besides, the minister stated that aircraft leasing is a key financial innovation that India’s growing civil aviation sector needs.
Emerging aviation hub
“Fuelled by the UDAN scheme and doubling of India’s airports in ten years, India has become the third largest domestic aviation market in the world,” he emphasised.
Furthermore, he said that by 2047, the Centre is planning to build 350 airports, out of which 34 will function as mega airports handling two crore passengers annually.
In the next five years, India plans to build 50 more airports, he said.
“The UDAN scheme is also extended for another 10 years, which will connect four crore passengers in the country along with creating 120 new destinations in India,” he added.