Air India Pilots Grounded Over Expired Licences, Unchecked Training
Scheduling lapses continue to trouble Air India, nearly five months after the DGCA reprimanded the carrier for regulatory violations. Two
India will extend the tax holiday on profits earned by aircraft leasing firms in its state-of-the-art finance hub to 15 years, said people familiar with the matter, to gain a larger share of the global leasing market, which Ireland presently dominates. Plane leasing companies based in Gujarat International Finance Tec-City (GIFT City) currently obtain a 10-year tax waiver.
Expanding this benefit by 5 years will make GIFT City more attractive to lessors, who make the bulk of their profits in the latter years, when there’s little depreciation charge, the people said. They did not want to be identified because the discussions are private. Profit is much lower,1% or so, throughout the early years of a plane leasing cycle, but it surges to as much as 40% in the later years, the people added.
As of January, 33 aircraft lessors were registered in GIFT City, and over 60 aircraft and engines have been leased through them. 31, as stated by a KPMG report.
The policy change, part of India’s budget proposals announced in February, is an effort to help the imminent finance hub gain market share in the USD 187 billion global aircraft leasing business. Competition is aggressive, with around half of the world’s leased aircraft currently managed from Ireland, and China, Singapore, and Malaysia all vying for a larger share of the market.
India’s commercial aircraft leasing market was about USD 4.7 billion in 2023 and will grow at an annual rate of 11.8%. India’s aviation ministry and the PIB did not instantly respond to emails seeking a comment on the plan to extend the tax benefits.
Pet Project The move to lure more aircraft lessors to GIFT City follows its recent success in enticing global financial institutions, such as Mitsubishi UFJ Financial Group Inc. and HSBC Holdings Plc, with a heap of tax incentives. The two-decades-in-the-making pet project of PM Narendra Modi, GIFT City, is India’s attempt to challenge financial centres, for example, Singapore, Hong Kong and Dubai. The proposed tax holiday extension, if implemented, would benefit the aircraft leasing firms of the largest local carriers, IndiGo’s InterGlobe Aviation Financial Services IFSC Pvt. and Air India’s AI Fleet Services IFSC Ltd. A spokesperson for Akasa Air said the smaller budget carrier has also applied for endorsements to set up a leasing entity in the low-tax hub. India’s policy change will also benefit subsidiaries of global companies. Rolls-Royce’s RRPF Engine Leasing (India) IFSC Pvt., CRJ Aviation Leasing (IFSC) Pvt. and Willis Lease Finance India IFSC Pvt. are amongst those registered at GIFT City, as stated by a regulatory website.
Source: Economic Times
Whether you're aiming to be a pilot or aviation expert, we’re here to help you choose the right aviation path.
