India's new airlines rethink leasing, go hybrid on fleets

New entrants think a partial shift to ownership may increase credibility with banks, investors

- Sakshi Sadashiv

New airline startups—such as Lucknow-based Shankh Air, Gurugram-based FlyBig and Goa-based Fly91 are moving beyond the industry's leasing-first model, opting instead for a hybrid fleet strategy that blends leased and owned aircraft. This aims to balance financial risk, win over conservative lenders and build long-term value, industry executives said.

Historically, leasing has dominated Indian aviation. Over 80% of commercial jets are leased in India, compared to approximately 53% globally, according to industry reports from Primus Partners and PwC. But new entrants believe a partial shift to ownership may increase credibility with banks and investors.

"We are pursuing a well-calibrated growth strategy that blends leasing and direct acquisition, aligned with the evolving dynamics of the Indian aviation sector," said Anurag Chabbra, co-founder and executive director of Shankh Air. "We will commence operations with two aircraft and aim to expand our fleet to seven and beyond by the end of 2026, focusing on key metro hubs while establishing Lucknow as our strategic base of operations."

The airline is backed by $50 million in funding from parent company Shankh Trading Pvt. Ltd.