India’s long-term aviation outlook remains robust as GIFT City and Cape Town reforms reshape aircraft financing. Sabrina Ng examines why stronger creditor protections and improved access to capital could support a more mature phase of growth.
Sabrina Ng, Senior Valuations Analyst, Cirium Ascend Consultancy
In Part One, we explored how operational constraints, financial pressures and shifting market economics have prompted Indian airlines to recalibrate growth plans and reallocate capacity toward more profitable opportunities. Yet the recent slowdown tells only part of the story, and India’s long-term aviation outlook remains robust. The reason lies not only in demand fundamentals, but also in the rapid evolution of the financial and institutional framework supporting fleet growth.
GIFT City, home to India’s International Financial Services Centre (IFSC) and regulated by IFSCA, has emerged as an increasingly credible hub for aircraft leasing and financing. The development is particularly significant given that more than 85% of India’s commercial fleet is operated under lease, with the majority historically financed and owned through offshore leasing centres such as Ireland. (....)