What is being proposed at GIFT City for aircraft leasing?

Bankruptcy-remote Special Purpose Vehicles (SPVs) are being proposed at GIFT City.

How will the new framework help aircraft lessors?

The new framework aims to simplify aircraft repossession for lessors in case an airline goes bankrupt.

Why is India developing this new framework?

India is developing this framework to reduce its reliance on offshore aircraft leasing hubs and improve asset recovery processes.

Home / Business and Economy / GIFT City SPVs Challenge Offshore Leasing Hubs

GIFT City SPVs Challenge Offshore Leasing Hubs

23 Mar

•

Summary

Bankruptcy-remote SPVs proposed at GIFT City.
New framework aims to simplify aircraft repossession.
India seeks to reduce reliance on offshore hubs.

GIFT City SPVs Challenge Offshore Leasing Hubs

A consultation paper has introduced the concept of bankruptcy-remote Special Purpose Vehicles (SPVs) within India's GIFT City. This strategic move is designed to diminish the dependence on established offshore aircraft-leasing hubs, such as those in Ireland.

The proposed regulatory framework is set to bolster the security for aircraft lessors. It aims to streamline the process of asset recovery should an airline face bankruptcy proceedings.

This development follows concerns raised by foreign executives regarding the efficacy of India's aircraft repossession enforcement, even with recent rule introductions. Historically, lessors have encountered substantial obstacles in reclaiming their aircraft.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.