Nearly 80–90% of fixed-wing General Aviation aircraft and about 60% of helicopters inducted into India are pre-owned. The reasons are straightforward: a significantly lower acquisition cost compared to new aircraft, and near-immediate availability, which is often critical for operators with time-sensitive requirements.

That said, acquiring the right pre-owned aircraft is rarely straightforward. The challenges begin at the aircraft selection stage and intensify during the transaction and closing phase—often becoming exponentially more complex for first-time buyers.

Well-maintained, desirable pre-owned aircraft—especially popular and proven models—operate in an unfavourable supply-demand environment. These aircraft do not remain on the market for long. Frequently, even after successfully shortlisting an aircraft and reaching commercial alignment with the seller, an Indian buyer is unable to bind the transaction in time. The primary reasons are extended regulatory timelines and an even more prolonged banking and remittance process, particularly when arranging a refundable escrow deposit to execute a Letter of Intent (LoI).

From experience, I have seen several highly sought-after aircraft—such as the Legacy 600/650, Challenger 650, King Air 200 series, and other popular types—lost by serious Indian buyers simply because the escrow deposit could not be placed quickly enough. By contrast, buyers in the United States and Europe typically place deposits almost immediately upon signing the LoI, while buyers from the Far East and China usually complete this step within 48 to 72 hours. For Indian buyers, however, the average timeline can extend to 20–30 days.

Given that sellers often have multiple competing buyers, such delays frequently result in the aircraft being sold elsewhere—despite the Indian buyer’s genuine intent and commercial capability.

Equally important, a quicker and more efficient acquisition process—one that allows buyers to secure well-maintained aircraft at competitive global prices—would help convert many prospective ‘fence-sitters’ into active participants. Such momentum could play a significant role in accelerating growth across India’s General Aviation sector by encouraging new entrants, fleet expansion, and greater confidence in the pre-owned aircraft market.

It is also worth noting that a quicker and more efficient acquisition process—one that enables Indian buyers to secure well-maintained aircraft at competitive global prices—can act as a meaningful catalyst for growth in India’s General Aviation sector. Greater transaction efficiency would encourage fleet modernisation, improve operational reliability, and contribute to a stronger and more vibrant business aviation ecosystem in the country.

The Global Transaction Norm vs. the Indian Reality

Internationally, aircraft transactions are initiated through a Letter of Intent, presented by the buyer and accepted by the seller, accompanied by a refundable deposit placed with a mutually acceptable aviation escrow service. An accepted LoI demonstrates the seriousness of both transacting parties and locks in the commercial terms, including price, broad timelines, and the framework for executing a binding purchase agreement.

The importance of quick execution of the LoI and prompt placement of the refundable escrow deposit cannot be overstated. However, for an Indian buyer, this typically requires in-principle approval from the regulatory authority to acquire the specific aircraft identified by its manufacturer serial number (MSN). This approval alone can take up to 15 days.

Banks, in turn, require this regulatory approval before commencing their due diligence. In many cases, Authorised Dealer banks also seek RBI approvals to remit even a refundable escrow deposit. When RBI approval is involved, timelines can extend by 4 to 8 weeks.

A Constructive Way Forward

With due respect to the regulatory and banking frameworks that safeguard India’s aviation ecosystem, there is an opportunity to introduce process-level refinements that would significantly improve the competitiveness of Indian buyers in the global pre-owned aircraft market—without diluting oversight or compliance.

One such reform could be the introduction of an expedited, in-principle regulatory approval, granted within one business day, solely for the limited purpose of allowing a refundable deposit to be placed in an internationally recognised aviation escrow account. Detailed scrutiny may continue in parallel, with buyers contractually restricted from entering into any binding or non-refundable commitments until full regulatory due diligence is completed.

Similarly, banks could work toward two to three business day timelines for placing refundable escrow deposits, recognising that such funds remain protected and reversible.

Call for Industry Dialogue

The intent of this article is not to critique existing systems, but to encourage a constructive industry-wide dialogue on how India can better align its processes with global transaction practices while retaining the necessary regulatory and financial safeguards.

Inputs from regulators, banks, operators, aircraft owners, brokers, legal advisors, and escrow providers would be invaluable. I welcome thoughts, experiences, and suggestions from industry colleagues to help ensure Indian buyers are not structurally disadvantaged in an increasingly competitive global aircraft market.