“As the world’s third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores,” Finance Minister Nirmala Sitharaman said in her 2019 maiden budget speech. “This is critical to the development of a self-reliant aviation industry, creating aspirational jobs in aviation finance..” she added
According to Finance Minister, India will be hub for financing aircraft purchases and leasing of planes. And also considering relaxing laws in foreign direct investment, which is currently reserve 51% stake ownership only for local investors.
Airlines opt for leasing aircraft because its ability to maintain a more modern and current fleet of aircraft which will be cycled out and replaced again with new aircraft at designated dates or intervals.
There are more than 100 companies worldwide are involved in Aircraft financing business.
Among them top 10 are;
1: AERCAP HOLDINGS – owns approximately $42 billion in assets, working with over 200 companies in over 80 countries. As of June 2018, they own and manage over one thousand aircraft, with 411 aircraft on order.
2: DUBAI AEROSPACE ENTERPRISE – DAE possesses a $15 billion portfolio, managing 371 aircraft for 109 airlines with an average age of just over six years per portfolio.
3: CHAPMAN FREEBORN – lease a fairly sizeable fleet of aircraft in many sizes from twin-turbine commuters to Boeing 747s and Airbus A380s.
4: TEXTRON FINANCIAL- The parent company of the aircraft manufacturer of Cessna, Beechcraft, and Bell Helicopters
5: GENERAL ELECTRIC CAPITAL AVIATION SERVICES (GECAS) – the company maintains a 70% market share of narrow body jet engines
6: AIR LEASE CORPORATION – With offices in Dublin, Ireland, and Los Angeles, and manages over three hundred aircraft for nearly one hundred customers in nearly sixty countries.
7: AVOLON – Avolon owns and maintains the youngest fleet of aircraft of the three major lessors. These are, of course, the Airbus A320, A330, and Boeing 737 family which represent the most used airliner jets in the world in spades.
8: NORDIC AVIATION CAPITAL- NAC claims to be the largest regional aircraft leasing company, leases 131 to 356 aircraft.
9: SMBC AVIATION CAPITAL- maintains a fleet of nearly 700 aircraft
10: INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ICBC) – Manages a fleet of around 330 aircraft