Budget 2019: Government to promote aircraft financing, leasing in India

Finance minister Nirmala Sitharaman announced in the Budget that the government will unveil measures for aircraft financing and leasing activities in India as a means to make India's aviation market self-reliant.

She also announced that the government for will come up with policy interventions for development of maintenance, repair and overhaul in India.

India's aviation sector is facing headwinds on account of higher aviation turbine fuel, lack of infrastructure at airports, low capacity utilisation in flights to small cities among others.


The aviation sector players expect major boost from the Budget which include a much needed relief on the aviation turbine fuel. Aviation turbine fuel comprises a major component of the overall costs of running an airline.

Airline operators are facing a host of issues. recently, the private carrier Jet Airways shut operations on account of failing to repay lenders. With the prospects of Air India's divestment looking bleak, the government needed to take immediate measures to rescue the aviation sector from crisis.