The Chinese presence in Indian aviation sector, few know about
In the past couple of years, Chinese aircraft leasing companies have gradually expanded their wings in the Indian aviation industry. About 20% of aircrafts operated by Indian aviation companies (96 out of 480) are leased from Chinese lessors. The Chinese lessors have made their presence felt in less than a decade, which was otherwise dominated by companies from the USA and Ireland. Most of the Chinese leasing companies are either backed or owned by local banks. Currently, there are over 20 leasing companies from China that are active in the aircraft leasing market.
Aviation industry experts say that Chinese lessors are very competitive and accommodative as compared to their counterparts in the developed market. Therefore, most of the low-cost airlines from India, Africa, Eastern Europe, and CIS countries are increasingly leasing planes from the Chinese lessors. Almost all the aviation companies in India including IndiGo, SpiceJet, Vistara, and AirAsia have leased planes from Chinese lessors.
In India, there is no indigenous leasing firm active, despite the fact that over 80% of the aircraft operating in India are on lease, and India is the world’s fastest-growing aviation market. India’s annual aviation lease rental market size is approximately Rs 10,000 cr. The time has come that India must develop its own aircraft leasing industry, which will provide much-needed support to its fast-growing airline industry.
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