According to an article that appeared on the Center for Aviation website, Kingfisher Airlines’ suspension of operations has had a flow-on impact on the global leasing and financing sector, highlighting some of the challenges facing aircraft financiers and lessors in the Indian market and again raising concerns regarding regulatory safeguards for international investment in India.

The article noted that the continued delays by the Indian Government to de-register Kingfisher-operated aircraft since it suspended operations in Oct-2012 is also expected to hurt other, still-operational, Indian carriers while also creating the impression that India is not adhering to the Cape Town Convention, of which it is a signatory.

According to DVB Bank, aircraft leasing, which has financed 35-40% of new deliveries over the past decade, is set to increase its share at the same time as the overall size of the financing gap is increasing. DVB noted that in 2011, commercial banks funded nearly two thirds of all new aircraft deliveries in 2011 directly or indirectly.

To read the full Centre for Aviation article click here.