Indian airlines need USD50 billion to finance fleet orders

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Indian airlines will require an estimated USD50 billion of financing to support projected deliveries until 2027.

Around 100 aircraft are to be delivered to Indian airlines each year for the next five years. This is by far the greatest volume of aircraft induction in the history of Indian commercial aviation. Projected fleet expansion represents a major opportunity for aircraft investors looking to deploy capital in new generation assets.

However, despite the strength of underlying demand, operators in the Indian market face a number of challenges. On the cost front, Indian airlines pay some of the highest fuel taxation in the world and also incur taxes on aircraft leases, while on the supply side, infrastructure and skills shortages (particularly commanders) are potential constraints on growth. 

These features are covered in a new report from CAPA India, the CAPA India Aircraft Fleet and Finance Report 2018.

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