IFSCA Framework for Aircraft Lease

IFSCA has issued a Framework for Aircraft Lease’ updated as on October 30, 2024. A Lessor shall be permitted to undertake all or any of the following activities:

1. Operating lease for an aircraft lease arrangement;
2. Operating lease for an aircraft ground support equipment;
3. Operating lease for an aviation training simulation device;
4. Asset Management Support Services for assets owned or leased out by the entity or by any of its Group Entities set up in IFSCs in India;
5. Sale and lease back, purchase, novation, transfer, assignment, and such other similar transactions in relation to permitted activities.

International Financial Services Centres Authority has specified an operating lease, including an hybrid of operating and financial lease, in respect of any piece of mobile equipment, whether or not powered or self-propelled, purpose designed, built and used for ground handling, servicing or field maintenance of aircraft on the ramp area of an airport and includes any piece of ground support equipment specified as such by IATA from time to time as a ‘financial product’.

This framework shall apply to all applicants desirous of seeking registration for one or more of the permissible activities.