Aviation companies to get cheaper credit

New Delhi: The Union Cabinet today gave its approval for accession to the Cape Town Convention/Protocol by India.
The convention provides an international legal and institutional framework for creation, prioritisation and enforcement of international interests in aircraft, thereby facilitating cross-border financing and leasing of aircraft.
The move is expected to help Indian aviation companies get cheaper credit and broaden their aircraft financing options.
Union Information and Broadcasting Minister P R Dasmunshi said the convention would provide greater confidence to the intending creditors and reduce risks applicable to asset-based financing and leasing transactions.
The Convention, which came into effect in 2006, provides a balance between enhanced creditor rights that helps in reducing aircraft financing costs. It applies to sale, financing and leasing of airframes, aircraft engines and helicopters among other things.
"The risk reduction will not only result in the availability of aviation credit at a cheaper cost, but will also broaden the spectrum of financing alternatives available to the aircraft operators. This will be of immense help to the Indian aviation industry," he said.
Most of the Indian airlines are at present in the process of leasing and purchasing of aircraft.
27/11/07 Business Standard

To Read the News in full at Source, Click the Headline

Categories: General Aviation Nov 2007