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India Plans Fractional Aircraft Ownership Policy, Eyeing Infrastructure Status

The government is developing a policy framework for fractional ownership in aviation. It is also considering recognizing aircraft as infrastructure assets to strengthen India's aviation financing ecosystem. The initiatives aim to position India as a major player in global aviation financing. GIFT City is being pitched as a specialized aviation financing center to complement global hubs.

Key Points: India's New Policy for Fractional Aircraft Ownership

  • Govt working on fractional aircraft ownership policy
  • Considering aircraft as infrastructure assets
  • Aim to strengthen aviation leasing ecosystem
  • GIFT City positioned as a specialized aviation financing hub
2 min read

Govt exploring fractional aircraft ownership policy, considering aircraft as infrastructure assets: Civil Aviation Minister

Govt explores fractional ownership policy and considers aircraft as infrastructure assets to boost aviation financing and leasing ecosystem.

"We are trying to create a policy so that the fractional ownership also becomes a reality in our country. - Civil Aviation Minister Ram Mohan Naidu"

New Delhi, May 8

The government is actively working on a policy framework for fractional ownership in aviation and is also considering recognizing aircraft as infrastructure assets to strengthen India's aviation financing and leasing ecosystem, Civil Aviation Minister Ram Mohan Naidu said on Friday.

Addressing the India Aircraft Leasing and Financing Summit 2.0 at GIFT City in Gandhinagar, the minister said the Ministry of Civil Aviation is engaging with the Ministry of Finance to develop forward-looking aviation financing policies.

"We are continuously engaging with the Ministry of Finance also in this regard... We are trying to create a policy so that the fractional ownership also becomes a reality in our country," Naidu said.

He added that the government is also "looking about how to create aircraft as an infrastructure asset," describing both initiatives as "work in progress."

The minister said the measures are aimed at strengthening India's aviation leasing ecosystem and positioning the country as a major player in global aviation financing.

Highlighting the government's vision for GIFT City, Naidu said India does not seek to compete with established global leasing hubs but intends to complement them.

"Gift City is not merely a competitive option for India-related leasing, but it is the natural home. What we are building at Gift City is a home for India's aviation financing needs," he said.

Pitching GIFT City as a specialised aviation financing centre, the minister said the ecosystem offers advantages over global hubs such as Dublin, Singapore and Dubai.

Speaking at the summit, Gujarat Chief Minister Bhupendra Patel said, "GIFT City has established itself as a distinct global fintech hub. Last year, too, GIFT City hosted this summit, and I believe the fruitful discussions then will give fresh momentum to building a developed India by 2047."

"This summit will feature dialogue and defence discussions. Concrete outcomes and benefits from these talks will be visible in the near future," Patel added.

- ANI

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Reader Comments

P
Priya S
GIFT City is a fantastic initiative for India's aviation financing. Instead of depending on Dublin or Singapore for aircraft leasing, we should have our own hub. This will save foreign exchange and create jobs. Well done, Minister Naidu! 🌟
M
Michael C
Interesting policy direction. I've seen fractional ownership work well in the US and Europe. India's growing HNI population would definitely benefit from this. The infrastructure asset classification could also help in getting better financing rates for airlines. Smart move all around.
R
Raghav A
All this is good for the rich, but what about the common passenger? Flight tickets have become so expensive, and airport parking charges are through the roof. Focus on making flying affordable for the middle class first, then talk about fractional ownership of aircraft. 🙏
S
Siddhartha F
This is the kind of forward-thinking policy India needs. GIFT City has the potential to become a global aviation financing hub like Dublin or Singapore. The key will be having the right tax incentives and regulatory framework. Looking forward to more details on this. 👍
T
Tanvi S
Finally, some progressive thinking in aviation policy! Fractional ownership could be a game-changer for business travel in India. And making aircraft an infrastructure asset will attract more investment. But please ensure proper regulations to prevent misuse. Safety should never be compromised. ✈️
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