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Experts Discuss Growing Role of Aviation Finance in Central Asia Amid Geopolitical Changes

Experts Discuss Growing Role of Aviation Finance in Central Asia Amid Geopolitical Changes
Expanding Aviation Finance in a Dynamic Region
The aviation sector in Central Asia and the Caucasus is experiencing significant growth, driven by increasing demand for air travel and evolving geopolitical dynamics. At a recent roundtable held on March 10 at the Astana International Financial Centre (AIFC), industry experts highlighted the accelerating importance of aviation finance in the region. Projections from the AIFC indicate that the aircraft fleet in Central Asia could double by 2030, reflecting broader global trends. Airbus forecasts a near doubling of the worldwide aircraft fleet from 24,730 in 2024 to approximately 49,210 by 2044. This rapid expansion is intensifying the need for innovative financing mechanisms, particularly aircraft leasing, as airlines seek to modernize and grow their fleets.
Leasing as a Dominant Model and Kazakhstan’s Strategic Role
Leasing has emerged as the predominant model for fleet management in Central Asia and the Caucasus, with estimates suggesting that between 55% and 80% of commercial aircraft in the region are leased—surpassing the global average of around 60%. Assel Bagissova, Head of the AIFC Aviation Finance Hub, noted that only 45% of the global commercial fleet is owned outright by airlines, underscoring leasing’s appeal due to its favorable risk-return profile. Industry data from 2024 further indicates that leasing companies have outperformed aircraft manufacturers in operational efficiency.
Kazakhstan, in particular, is positioned as a regional leader in this expanding market. Peter Foster, CEO of Air Astana, emphasized the country’s strategic geographic location, growing infrastructure, and skilled workforce as key factors underpinning its leadership. He acknowledged the rapid development occurring across the region and stressed the need for a coordinated aviation development strategy to maintain Kazakhstan’s competitive edge. The AIFC is actively promoting Kazakhstan as a hub for aviation finance and leasing, aiming to attract investment, support sustainable growth, and enhance international collaboration. Zhanbolat Kakishev, Chief Product Officer of the AIFC Authority, highlighted the Aviation Finance Hub’s role in facilitating financing and leasing arrangements for both commercial and cargo aircraft.
Challenges, Competition, and Regulatory Considerations
Despite the promising outlook, the region faces several challenges. Experts pointed to regulatory fragmentation and the necessity for greater financial transparency, especially within private aviation sectors. These issues contribute to increased scrutiny from investors and customers concerning the financial stability of airlines and lessors operating in the region.
The competitive landscape is also evolving rapidly. Market participants are pursuing strategic partnerships, such as FlyHouse’s collaboration with Brazilian operators, and embracing technological innovations exemplified by Elevate Jet’s self-service air charter application. Geopolitical shifts are further influencing growth strategies; for instance, Finnair is redirecting its focus toward Europe and Asia in response to pressures on North Atlantic yields.
Legal and regulatory frameworks remain critical to the attractiveness of jurisdictions for aviation leasing. Jim Bell, Partner at Watson Farley & Williams, emphasized that a robust legal system, favorable tax policies, and a well-developed aviation services ecosystem are essential. He suggested that the AIFC could complement established global leasing centers if it carefully calibrates its regulatory environment and market positioning.
As Central Asia’s aviation sector continues its expansion, the establishment of reliable and secure financing frameworks will be vital to sustaining growth and enhancing the region’s competitiveness on the global stage.

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