This year’s Union budget (2020-21) had announced incentives for aircraft leasing companies to open their offices in India’s GIFT City (Ahmedabad) and this attracted a lot of Indian companies, too. India’s leading public sector bank, SBI also showed interest in entering the market of aircraft leasing.
Taking the best example here, the Chinese Government encouraged the Bank of China to tap into the sector of aircraft leasing, and eventually, the aforementioned bank has become the world’s largest aircraft leasing company. SpiceJet CEO, Mr. Ajay Singh, has also shown interest in investing in the GIFT City on aircraft leasing companies at personal capacity. Implementation of this scheme will prove vital for the Indian Aviation market since recently, we had Indigo placing a firm order of 300 A320s in the pandemic.
As of now, we have Acumen Aviation (International Asset Management Company) and Mumbai-based aviation service firm, Vman Aero who are set to open their offices in GIFT City. With competitors already and government incentives in hand, it is a good opportunity for SBI to enter the market with huge capital and collaboration with a veteran firm in the segment to implement it correctly.
Learn more about Airline Revenue Management and Analysis in our upcoming workshop (https://www.udaanaviationacademy.com/airline-revenue-management-analysis)