Tuesday, June 16, 2020

Aircraft lessors find themselves re-evaluating India exposure

Leasing remains the dominant method for Indian airlines to acquire aircraft. Of the current Indian commercial aviation fleet, more than 80 percent is leased compared to the global average of around 41 percent. This because given the structural challenges in Indian aviation, options that minimise cash-burn are usually more attractive. Leasing is one such option. In addition to cash-flow considerations, leasing traditionally has also been driven by liquid credit markets, low-interest rates, high competition and high demand.

However, with the pandemic that has revealed the extremely fragile nature of some of India’s airlines, aircraft lessors are being forced to re-evaluate their India exposure.
Read more on the challenges faced by aircraft lessors >>
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