Monday, November 28, 2016

India Said to Mull Foray Into Plane Leasing to Support Modi Plan

India is considering buying and leasing small planes to local carriers as part of Prime Minister Narendra Modi’s plan to connect remote towns and villages by air, people familiar with the proposal said.

To succeed, Modi’s plans would need small, 20-seat aircraft, which are usually not leased out by traditional aircraft-renting companies, the people said, declining to be identified because the proposal hasn’t been made public. The government would either use an existing state-run company or set up a new entity for this, one of the people said.

Only 75 out of India’s 450 airfields have scheduled commercial operations as carriers shy away from flying to remote areas. Modi wants to revive them by offering subsidies to airlines plying those routes. Having smaller planes will help the carriers fill up most seats and help the government objective of connectivity, the people said.
27/11/16 Anurag Kotoky/Bloomberg