INDIA is trying to create an aircraft leasing ecosystem and the Gift City in Gujarat has already leased out 200 planes to different companies, Civil Aviation Minister Ram Mohan Naidu said on Wednesday. Replying to supplementaries in the Lok Sabha, Naidu said civil aviation has witnessed phenomenal growth over the decades and the government was committed to facilitating greater competition in the sector which could lead to lower air fares. “I agree with the idea that we need more competition. It is simple economics, more competition, more flights and definitely tariffs will come down,” the minister said.

 

Naidu said Prime Minister Narendra Modi was keen on developing the aircraft leasing ecosystem in the country and several companies have set up bases at the Gift City in Gujarat. “Gift City is trying to create such an ecosystem. It has already leased out 200 planes,” the minister said, adding that Ireland, Singapore and Dubai are major hubs for leasing aircraft. Naidu said the Government was keen on getting more airline fleets in the country and was also working on bringing down the aircraft leasing costs. “We are bringing a law to ratify Capetown Convention which will reduce the leasing costs by 8-10 per cent. The reduction in leasing costs will trickle down to passengers and air fares,” he said. Naidu said India had 340 aircraft in 2014 and that number has increased to 840 and airlines have placed orders for 1,700 planes.