Indian Operators Push For Aircraft Interest Rate Breaks
Neelam Mathews March 3, 2016 The Indian government is aggressively promoting its Regional Connectivity Scheme, which encourages charter operators to run scheduled services, including some operating business jet types. To support that program by making new aircraft purchases more viable and help stimulate business aviation in general, the Punjab Haryana Delhi ( PHD ) Chamber of Commerce, supported by India’s Business Aircraft Operators Association ( BAOA ), has appealed to central government for an interest subsidy to bring prevailing interest rates from Indian finance agencies more in line with international rates for small-aircraft loans. Bhupesh Joshi, CEO and director of Indian operator Club One Air, told AIN , “The present rate of interest is very high in India; at retail commercial rates of 14- to 16 percent, making it unviable. We have suggested the interest rate be capped at 9 percent.” To ensure lending institutions have le...