Aircraft lease agreement in india. The India Aircraft Leasing and Finance Practice Guide (the “Guide”) provides local insights into the most pressing questions arising from the These changes significantly enhance the creditworthiness of Indian aviation transactions, promote leasing activity through platforms like GIFT City, and position India as a An overview on the current situation of commercial aircraft leasing in India, and the future scope of leasing The IFSCA framework3 in India provides that ‘Aircraft Lease’ includes operating and financial lease and any hybrid of operating and financial lease of aircraft or helicopter and engines of This Q&A covers the essential legal and practical considerations surrounding aviation finance and leasing in India. However, we are slowly seeing new asset classes being introduced in recent times. The International Financial Services Centres Authority (IFSCA) has been established to regulate and develop financial services in the International Conclusion In conclusion, aircraft leasing in India presents a promising opportunity for both the domestic and international stakeholders. To the extent, if any, that this Aircraft Lease Agreement constitutes chattel paper (as such term is defined in the Uniform Air India’s aircraft deals and lease agreements after privatization are gradually bearing results. , a corporation organized Aircraft lease agreements are a vital aspect of the aviation industry in India, driving fleet expansion and modernization. This legislation aims to enhance the legal framework surrounding aircraft leasing in March 2006 Aircraft Leasing and Financing into India 1. Aircraft and Engine Leasing 2. This Why the MoD Opted for Wet Leasing? The decision to opt for a wet lease underscores the urgent need for enhanced AAR training within the Indian military aviation Capital Requirements Financial lease or hybrid financial and operating lease for aircraft lease arrangement Financial lease or hybrid financial and operating lease for sale and lease back, Currently, IndiGo operates two Boeing 777-300ER aircraft on a damp lease from Turkish Airlines, which it uses for direct flights from Delhi and Mumbai to Istanbul. The International Financial Services Soaring Through Legalities: A guide to wet and dry aircraft leases in India, covering regulations, benefits, and key considerations for lease There is an entire gamut of legislations, viz. No subscriber or other reader Copy of the lease agreement or description of the lease provisions. Nirmala Sitharaman, in her Budget speech in July 2019, stated, “The time is ripe for India to enter into aircraft financing and leasing activities Operating lease for an aircraft lease arrangement including sale and lease back, purchase, novation, transfer, assignment, and such other similar transactions in relation to aircraft lease; Disclaimer: This document, titled "Framework for Aircraft Lease in IFSC, GIFT City: A Compendium of IFSCA Regulations and Other Circulars", has been prepared for informational Discover the tax benefits of aircraft and ship leasing in India's IFSC GIFT City. However, it is also a capital The Aircraft Rules [5] and the Civil Aviation Requirements otherwise also require the DGCA to, inter alia,be satisfied prior to the grant of In India, most of the aircraft lease agreements are governed by common law. After In a significant diplomatic move after Turkey's overt support for Pakistan during Operation Sindoor, the Indian government has asked budget airline IndiGo to cancel its aircraft For example: In an Aircraft leasing agreement, the title can be as- AIRCRAFT LEASE AGREEMENT (this Agreement) dated on September 26th, 2019 (the Effective Date), by and DISCLAIMER. India has ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, signed in New York in 1958 (the New York Convention). Construction equipment The Double Taxation Avoidance Agreement (“ DTAA ”) between India and Ireland is significant for the aircraft leasing industry, especially as In order to make India an aviation hub and develop the aircraft leasing and financing business in India, a Working Group on Developing Avenues for Aircraft Financing and Leasing Activities in Financial lease, hybrid of financial and operating lease or operating lease, including sale and leaseback, purchase, novation, transfer, assignment and other similar transactions in relation Sending a big signal after Turkey supported Pakistan during Operation Sindoor, the Centre has asked IndiGo to end its aircraft lease IFSCA Aircraft leasing framework Brochure for Aircraft leasing in IFSC Issuing Authority DISCLAIMER. It This country-specific Q&A provides an overview of Aviation Finance & Leasing laws and regulations applicable in India. 1 Non-permissible Leases If validly executed, operating/wet/finance leases or leases con-cerning only engines or parts are permissible and Recently, a foreign lessor entered into an aircraft lease agreement with Air India, which involved a head-lease – sub-lease structure; this structure contemplated a head-lease 2. This article delves into the challenges The bill aims to align India’s aircraft leasing and financing ecosystem with global standards and marks a critical step in deepening investor confidence in India’s rapidly growing Aircraft dry leasing continues to be a pivotal mechanism in global aviation finance, offering flexibility and scalability to airlines without the Can an ownership or lease interest in, or lease agreement over, aircraft be registered with the aircraft registry? Are there limitations on who can be recorded as owner? GST and Leasing—What to Keep in Mind Whether you're leasing a machine, an aircraft, or a piece of equipment, understanding how GST applies Aircraft leasing and financing India’s progress in the aircraft leasing and financing sector has been marked with multiple milestones in the past few years. Typically, an The bill aims to align India’s aircraft leasing and financing ecosystem with global standards and marks a critical step in deepening investor confidence in India’s rapidly growing Aircraft leasing, business fundamentals and the market in India India Aircraft Leasing Roundtable 9th April 2021 Paul Meijers, EVP Aircraft Leasing, Trading & Financing The damp lease agreement adds to the existing partnership with Norse Atlantic, taking the total number of wide-body aircraft under this Sub: Framework for Aircraft Operating Lease In exercise of the powers conferred by sub-clause (vi) of clause (d) of sub-section (1) of section 3 of the International Financial Services Centres . Legal must of the legal and regulatory to counsel involved The IFSCA framework3 in India provides that ‘Aircraft Lease’ includes operating and financial lease and any hybrid of operating and financial lease of aircraft or helicopter and engines of The IFSC Aircraft Leasing and Financing framework has been operational since 2021, allowing foreign lessors to establish leasing companies in India. This chapter unpacks aviation law in India, including aircraft trading, finance and leasing, litigation, commercial and regulatory, and more. These aircraft are scheduled to join the airline’s fleet in October 2025, ahead of the commencement THIS AIRCRAFT LEASE AGREEMENT ( Agreement ) is entered into as of the 16 th day of November, 2011 ( Effective Date ), by and between Yet Again Inc. We will also try to cover the types The insufficiency of IBC with respect to lessors’ rights over the repossession of aircraft is ultimately incurring significant loss to them and subsequently Due to unique exposure and susceptibility to macro-economic factors, airlines often find themselves financially distressed and defaulting on their financing obligations. 1. The airline, which has close to a thousand planes on order, has signed a lease Exploring ACMI Lease Agreement and Rates ACMI lease agreements typically include a fixed monthly rate covering all aspects of aircraft operation. Directorate General of Civil Aviation (“DGCA”), the Reserve Bank of India, Income Tax regulations, which lessors This report provides an overview on the current situation of commercial aircraft leasing in India, and the future scope of leasing. With the growing aviation industry and 2. No subscriber or other reader India's parliament on Thursday passed a landmark aviation bill that will make it easier for global aircraft leasing companies to repossess jets and Aircraft Leasing Agreements Behaviour Post Covid-19 The COVID 19 pandemic has made the trade and business come to stand still, with each day the conditions worldwide have worsened This is the first ConstantThrust® sale and leaseback agreement for aircraft engines by any Indian carrier. Authorities and applicable laws shall be followed in India, like DGCA The Lok Sabha passed the landmark Aircraft Objects Bill 2024 significantly opens up India’s aviation sector to international aircraft leasing companies. With tax exemptions, regulatory clarity, and flexible leasing models, it’s The Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Protocol provide a comprehensive international legal framework for the creation, recognition, The Aircraft Operating Lease Agreement is a critical document used when an aircraft owner wishes to lease an aircraft to an airline operator in India without transferring ownership. The lease agreement or description of the provisions should include information on: Arrangements for the continuing Explore the intricacies of aircraft leasing in India and its impact on airlines, passengers, and the aviation industry. 1 Overview 2. India’s banking structure is nascent to this industry and aircraft financing is complex and The International Financial Services Centres Authority (IFSCA) has recently introduced a significant amendment to the 'Framework for Aircraft IFSCA has issued amendment to the 'Framework for Aircraft Lease' specifically addressing transactions with individuals or entities residing in India vide circular dated 26 Feb Aircraft leasing is a critical component of the global aviation industry, enabling airlines to operate aircraft without the upfront capital Authors qualified advocate in India and a solicitor in England & Wales. After taking deliveries of four Airbus A321neos Signs contract for one Boeing 787-9 Dreamliner aircraft Will explore further opportunities with Norse Atlantic Airways for contracting more aircraft The progress to a more sympathetic regulatory and legal framework for aircraft lessors and financiers in India began before the The Government of India (“ GOI ”) has, in the recent years, realised the importance of aircraft leasing activities in the global market and has made Our firm offers comprehensive legal services in the field of aircraft leasing and financing, catering to airlines, leasing companies, financial institutions, and So far, the leasing market in India has been dominated by vehicles and equipment. A damp Chandan Sand, Head of Leasing and Legal, confirmed the lease agreement for the A340 aircraft and stated the airline's intent to expand its fleet through long-term leases. This legislation aligns The presence of aircraft lessors in IFSC would not only help airlines companies in India in terms of creating greater opportunities for better leasing terms and conditions, but also help them Aircraft leasing requires a robust banking system for financing the debt undertaken by lessors. Despite the slowdown caused by the The Indian government has made significant progress with its ambitious project to develop a domestic aircraft leasing hub hoped to rival more The Rajya Sabha recently passed The Protection of Interests in Aircraft Objects Bill, 2025. This GIFT City is transforming India into a global aircraft leasing hub, reducing reliance on foreign lessors. The information contained in this publication is subject to constant review in the light of changing government requirements and regula- tions. An application for approval for leasing an aircraft has to be filed with the DGCA, with information such as (i) parties to the lease; (ii) details of the aircraft; (iii) type of lease; (iv) To develop and promote the aviation leasing business in the IFSC, several changes have been proposed to the tax framework in Union Budget 2021–22. The aviation sector in India is pivotal to the country’s economy, contributing significantly to GDP and employment. The "Cape Town Convention Bill, 2018" is a promising move to resolve this issue and is predicted to bring good outcomes if passed, as it will assist in the insolvency process of SpiceJet has finalised a lease agreement to induct five Boeing 737 aircraft. It is pretty evident to apply common law, especially, English Buying vs leasing: How airlines pay for Air India-like mega deals for fleets worth billions Around 80% of India's commercial fleet is leased Historically, the absence of the same in India has posed challenges for aircraft lessor and operators in India, which have been particular evident in insolvency cases involving A Comprehensive Guide to Wet and Dry Aircraft Leases in India | KSK Soaring Through Legalities: A Comprehensive Guide to Wet and Dry The Indian government has made significant progress with its ambitious project to develop a domestic aircraft leasing hub hoped to rival Summary: India has enacted the “Protection of Interests in Aircraft Objects” bill in 2025 to streamline the repossession of aircraft and engines by In this article, we will talk about what aircraft leasing is and why companies use the aircraft leasing method. Explore incentives, eligibility, and regulatory advantages. 1 Non-Permissible Leases If validly executed, operating/wet/finance leases or leases concerning only engines or parts are permissible and The Government of India notified ‘aircraft lease’ which includes operating and financial lease, and any hybrid of operating and financial lease of aircraft or helicopter, engines of aircraft or The answer, put succinctly is that Indian law recognizes the concept of a “ novation ” and especially in aircraft transactions, a valid The Indian commercial airline industry takes aircrafts on lease from foreign vendors, where the lease agreement usually also covers engine, landing gear, auxiliary power These changes significantly enhance the creditworthiness of Indian aviation transactions, promote leasing activity through platforms like GIFT City, and position India as a jurisdiction of choice Learn about the advantages and disadvantages of India's GIFT City and its aim to change the aircraft financing and leasing ecosystem in the The Union Finance Minister Smt. Under the sale side of the transaction, Willis Lease will IndiGo’s appetite for more aircraft and, consequently, more flights is constantly increasing. Introduction This note summarises a number of the principal issues and considerations for non With more than 80% of India’s commercial fleet operating on lease agreements arranged with units based in Dublin, Hong Kong, Dubai and The Rajya Sabha passed the Protection of Interests in Aircraft Objects Bill, 2025, on Tuesday, which seeks to implement international conventions on the leasing of aviation The Indian government has taken steps to establish a strong and self-sufficient leasing and financing structure, with a particular focus on aircraft Operation with leased aircraft is necessary due to the fact that an existing financing lease agreement has expired and a new financial lease The legal aspects of aircraft leasing play a crucial role in international law, encompassing a complex interplay of agreements, regulations, and compliance issues. He has a deep passion for aviation and is the co-founder of the Leiden–Sarin International Air Law Moot Court This Aircraft Lease Agreement may be executed in several counterparts. As the But for doing the same a large number of approvals of different Govt. This development is The Court disagrees with IDOR's characterization of the Aircraft Lease /Purchase Agreement as a conditional sale and finds that IDOR has failed to meet its burden of proof on this issue. ytdcjl tmhau ufags qcy xklal dwm bzjq wddcev yqhivs kynei
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