India is contemplating lengthening the 'tax holiday' period for aircraft lessors at GIFT City from 10 to 15 years, potentially providing significant benefits to airlines such as Air India and IndiGo Airlines. The move aligns with broader regulatory reforms, including potential changes to wet-leasing rules, relaxed age restrictions on leased aircraft, and more flexible financing options. GIFT City, serving as India's primary financial hub, structured a refinancing loan for Air India involving six B777-300ER aircraft, highlighting its role in the nation's aviation finance sector.
This initiative aims to enhance India's attractiveness as a leasing market for international aircraft financiers and operators. The extension of tax incentives could foster greater leasing activity and competitiveness for Indian airlines and lessors. The government’s regulatory review suggests an effort to modernize aviation financing frameworks and draw more global investment into the sector.
Such reforms are part of India's broader strategy to bolster its aviation industry, which includes attracting more fleet acquisitions and expanding international connectivity. These measures could also influence leasing costs and operational flexibility for airlines based or operating in India.
