Aircraft Orders & Deliveries
India Eases Aircraft Leasing Rules to Boost Aviation Sector
Introduction
The Indian government’s recent approval of a bill to ease aircraft leasing rules marks a significant step towards reducing operational costs for airlines and boosting the country’s aviation sector. This legislative change prioritizes the Cape Town Convention over conflicting local laws, addressing long-standing concerns of global lessors and financiers. The move comes at a crucial time when India’s aviation market is experiencing exponential growth, with domestic carriers placing orders for over 1,200 aircraft.
The aviation sector in India has been grappling with challenges related to aircraft leasing, particularly after the National Company Law Tribunal (NCLT) ruling in the Go First insolvency case. This ruling created uncertainty for lessors, leading to increased lease premiums and operational costs for airlines. The new bill aims to restore confidence among lessors by providing a clear legal framework for aircraft repossession in cases of default, thereby making India a more attractive destination for leasing activities.
With the ratification of the Cape Town Convention, India joins a global movement towards standardizing aircraft leasing practices. This development is expected to attract more international lessors, reduce financing costs, and ultimately benefit passengers through lower airfares. The bill’s approval underscores the government’s commitment to fostering a robust aviation ecosystem, which is essential for sustaining the sector’s growth trajectory.
The Cape Town Convention and Its Implications
The Cape Town Convention, formally known as the Convention on International Interests in Mobile Equipment, is an international treaty designed to standardize the treatment of security interests in mobile equipment, including aircraft. Adopted in 2001, it aims to facilitate the financing of aircraft by providing a uniform set of rules that protect the interests of creditors and lessors. India acceded to the convention in 2008, but the absence of domestic legislation to enforce its provisions has been a major hurdle.
The new bill, titled the Protection and Enforcement of Interests in Aircraft Objects Bill, seeks to bridge this gap by giving primacy to the Cape Town Convention over conflicting local laws, such as the Insolvency and Bankruptcy Code, 2016. This legislative clarity is expected to enhance the confidence of global lessors, who have often viewed India as a risky jurisdiction due to the lack of a robust legal framework for aircraft repossession.
“Passing of the bill is a welcome move and it should have a positive impact on the overall leasing environment in India. The bill, once passed, will provide legitimacy to the convention and should send a positive signal to the leasing community,” said IndiGo, India’s largest airline.
Experts believe that the ratification of the Cape Town Convention will significantly reduce the cost of leasing aircraft in India. Nitin Sarin, managing partner at law firm Sarin & Co, noted, “The leasing community is a small one, and soon, with the added security the Convention gives financiers, the cost of leasing and financing should reduce, benefiting the flying public in the long run.”
Impact on the Indian Aviation Sector
The Indian aviation sector is one of the fastest-growing in the world, with domestic air passenger numbers increasing from 160 million in 2014 to 380 million in 2024. This growth trajectory is expected to continue, with projections indicating that passenger numbers could reach 3.8 billion by 2047. To accommodate this surge, India is also expanding its airport infrastructure, with the number of airports set to rise from 159 to 350 by 2047.
The new bill is expected to play a pivotal role in supporting this growth by making it easier for airlines to lease aircraft. Currently, Indian airlines rely heavily on leasing to expand their fleets, with over 70% of the country’s commercial aircraft being leased. By reducing leasing costs and providing a more predictable legal environment, the bill will enable airlines to operate more efficiently and pass on the savings to passengers.
Priya Mehra, chief of governance & strategic acquisitions at Akasa Air, emphasized the importance of this development, stating, “This approval will build more comfort and confidence in India as a jurisdiction to lease aircraft and is yet another positive step taken by the government to ensure continued growth of the aviation sector.” The bill’s passage is also expected to attract more international lessors to the Indian market, further boosting the sector’s growth.
Conclusion
The government’s decision to ease aircraft leasing rules through the ratification of the Cape Town Convention is a landmark move that addresses critical challenges in the Indian aviation sector. By providing a clear legal framework for aircraft repossession, the bill restores confidence among global lessors and reduces operational costs for airlines. This development is expected to have a ripple effect, benefiting passengers through lower airfares and supporting the sector’s continued growth.
Looking ahead, the ratification of the Cape Town Convention positions India as a more attractive destination for aircraft leasing, paving the way for increased investment in the aviation sector. As the country continues to expand its airport infrastructure and accommodate growing passenger numbers, this legislative change will play a crucial role in sustaining the sector’s growth trajectory and solidifying India’s position as a global aviation hub.
FAQ
What is the Cape Town Convention?
The Cape Town Convention is an international treaty that standardizes the treatment of security interests in mobile equipment, including aircraft. It aims to facilitate aircraft financing by protecting the interests of creditors and lessors.
How will the new bill impact Indian airlines?
The new bill will reduce leasing costs for Indian airlines by providing a clear legal framework for aircraft repossession in cases of default. This will make India a more attractive destination for global lessors.
What are the benefits of ratifying the Cape Town Convention?
Ratifying the Cape Town Convention will enhance the confidence of global lessors, reduce financing costs, and support the growth of the Indian aviation sector. It will also benefit passengers through lower airfares.
Sources: The Economic Times, Business Standard
Aircraft Orders & Deliveries
Boeing and Icelease Agree on Up to Three 767-300BCF Aircraft
Icelease signs for up to three Boeing 767-300BCF aircraft, with conversions at ST Engineering Singapore starting Q1 2027.
The Boeing Company and aircraft lessor Icelease have finalized an agreement for up to three Boeing 767-300 Boeing Converted Freighter (BCF) aircraft, marking the leasing firm’s expansion into the medium widebody cargo market.
Announced in a press release on November 2, 2026, the transaction includes one firm order and options for two additional conversions. The aircraft will join the managed cargo portfolio of IAT Leasing, a Dublin-based sister company to Icelease.
Conversion timeline and operational details
The formal signing ceremony for the agreement took place on October 22, 2026, during the Cargo Facts Symposium. The physical conversion work will be executed at ST Engineering’s airframe maintenance, repair, and overhaul (MRO) facilities located in Singapore.
Induction of the first Boeing 767-300 aircraft for conversion is scheduled for the first quarter of 2027. Delivery of the completed Boeing 767-300BCF to Icelease and IAT Leasing is expected to follow in the second quarter of 2027. The Boeing Converted Freighter programs are managed by The Boeing Company’s Global Services division.
Lindsey Douglas, Vice President of Cabin, Modifications, Maintenance and Digital Services at The Boeing Company, stated that the agreement underlines the continued collaboration between the two companies to meet global cargo demand.
Sigthor Einarsson, Managing Partner at Icelease, noted the strategic importance of the deal for the lessor’s broader fleet strategy.
“This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing,” Einarsson said.
Icelease and IAT Leasing’s growing cargo portfolio
The Boeing 767-300BCF order builds upon an established relationship between the manufacturer and the lessor. Icelease, an aircraft leasing company with a 21-year history, specializes in aircraft acquisitions, leasing, operations, finance, and investor relations. The firm was originally formed as a spinoff from Icelandair in 2005.
On November 14, 2021, Icelease placed an order for 11 Boeing 737-800 Boeing Converted Freighter (737-800BCF) aircraft during the Dubai Airshow. That order established Icelease as the launch customer for a new conversion line at Boeing’s London Gatwick MRO facility.
The newly ordered widebody freighters will be managed by IAT Leasing. Incorporated in late 2023, IAT Leasing is owned by four equity partners. The Dublin-based entity has rapidly built a portfolio of approximately 40 narrowbody and widebody passenger and Cargo aircraft, which are leased to operators globally. The company’s current managed cargo portfolio already includes seven Boeing 737-800BCF aircraft.
“The history between Icelease and Boeing dates over 20 years and includes a multitude of new aircraft deliveries as well as cargo conversions,” Einarsson said. “The Boeing 767-300BCF will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers.”
Widebody freighter market outlook
The Boeing 767-300BCF is positioned to serve regional and long-haul cargo networks as a highly efficient medium widebody converted freighter. The aircraft offers a payload capacity of 57 tonnes and a maximum range of 3,300 nautical miles.
The Icelease order aligns with broader industry forecasts regarding long-term air cargo growth. On October 28, 2026, The Boeing Company released projections indicating that the global freighter fleet will exceed 4,000 airplanes by 2045. The manufacturer anticipates that air cargo traffic will double over the same period, providing a sustained demand environment for passenger-to-freighter conversion programs across both narrowbody and widebody platforms.
AirPro News analysis
We view Icelease’s transition from narrowbody to medium widebody conversions as a natural progression for lessors seeking to capture higher-yield cargo segments. While the Boeing 737-800BCF serves domestic and regional express networks effectively, the Boeing 767-300BCF provides the volume and range necessary for intercontinental e-commerce flows. By securing conversion slots at ST Engineering for 2027, Icelease and IAT Leasing are positioning their portfolio to absorb capacity demands as older widebody freighters face retirement toward the end of the decade. The decision to allocate these assets to the recently formed IAT Leasing also highlights the robust investor appetite for dedicated freighter leasing vehicles.
Photo Credit: Boeing
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
Aircraft Orders & Deliveries
CDB Aviation Leases Additional Boeing 737-800 to Neos
CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.
Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.
The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.
Expanding the Neos narrowbody fleet
Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.
The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.
Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.
“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”
A growing lessor-operator partnership
The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.
Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.
“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.
Photo Credit: CDB Aviation
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