The Union Civil Aviation Ministry is working on a series of policy initiatives aimed at deepening India’s aircraft financing ecosystem, including a framework for fractional aircraft ownership and efforts to classify aircraft as an infrastructure asset, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said on Friday.
Speaking at the Aircraft Leasing and Financing Summit 2.0 in GIFT City, Naidu said the Ministry is in discussions with the Finance Ministry to create a regulatory framework that could allow fractional ownership models in aviation.
“We are actively working on some forward-looking concepts including fractional ownership in aviation. We are continuously engaging with the Ministry of Finance in this regard. We are trying to create a policy so that fractional ownership becomes a reality in our country,” Naidu said.
He added that the government is also examining ways to classify aircraft as infrastructure assets, a move that could potentially open up access to long-term institutional financing for the sector.
“We are also looking at how to create aircraft as an infrastructure asset. This is under serious consideration. Fractional ownership and taking aircraft as an infrastructure asset are two things which are work in progress,” the Minister said.
Seaplane operations
The comments come at a time when Indian airlines are in the midst of one of the world’s largest fleet expansion programmes, with carriers collectively ordering more than 1,600 aircraft and increasingly looking to route leasing and financing activity through Gujarat’s GIFT IFSC.
Naidu also said the government is preparing to restart seaplane operations in India, with services likely to begin between Kochi and Lakshadweep in two-weeks time.
“Seaplane operations we are going to start in two weeks between Kochi and Lakshadweep. It was supposed to be quite an impossible task for quite some time. The Ministry has streamlined the guidelines and we are proud to say that very soon India is going to see seaplane operations back on its map,” he said, adding that the move could create new opportunities for aircraft and seaplane leasing companies.
Air India crash
The Civil Aviation Minister said that investigation into the Air India airplane crash in Ahmedabad is underway in a “transparent” manner.
“It is our effort to see that the investigation concludes as soon as possible. The investigation process is in the final stages and is expected to take one more month. We are constantly monitoring the situation, and we have told the airline that they should interact (with the families), and clear the compensation. There is a cell in the Ministry that is monitoring the situation. If there are any other problems, the Ministry will try to facilitate talks through the airline,” Naidu said.
On June 12, 2025, a Boeing 787-8 Dreamliner passenger aircraft bound for London had crashed immediately after taking off from Sardar Vallabhbhai Patel International Airport in Ahmedabad killing 260 people.
Published on May 8, 2026