Geopolitical changes and rapid growth in air travel are increasing the importance of aviation finance across Central Asia and the Caucasus, DKNews.kz reports.
These issues were discussed during an expert roundtable held on March 10 at the Astana International Financial Centre (AIFC). The event brought together representatives of the aviation industry, international organisations and financial experts to examine new financing models and the potential role of the AIFC as a regional aviation finance hub.
Aircraft fleet in the region could double
According to research presented at the event, the aircraft fleet in Central Asia and the Caucasus could double by 2030.
At the same time, Airbus forecasts show the global fleet expanding significantly over the next two decades.
Key projections highlighted during the discussion include:
- global aircraft fleet expected to grow from 24,730 in 2024 to about 49,210 by 2044
- strong growth in passenger traffic across emerging aviation markets
- rising demand for aircraft financing and leasing solutions
Experts noted that the expansion of airline fleets is creating increasing demand for modern financial instruments capable of supporting the aviation sector’s long-term development.
AIFC explores role as regional aviation finance hub
During the roundtable, experts discussed the development of aircraft leasing and aviation finance globally and the opportunities available in Kazakhstan.
Zhanbolat Kakishev, Chief Product Officer of the AIFC Authority, presented the Aviation Finance Hub initiative.
“The AIFC is exploring Kazakhstan’s potential as a regional hub for aviation finance and leasing, drawing on leading global practices and growing demand in Central Asia and the Caucasus. The Hub development initiative aims to facilitate the financing and leasing of commercial and cargo aircraft, support the sustainable development of aviation in the region, attract investment, and foster international cooperation,” he said.
The initiative aims to build a strong ecosystem for aviation financing and attract international investors to the region.
Kazakhstan’s aviation sector continues to grow
Peter Foster, CEO of Air Astana, emphasized that Kazakhstan already holds a leading position in the regional aviation market.
“Kazakhstan is Central Asia's aviation leader in the fastest growing air transport market in the world. However, we are not unchallenged. Other parts of the region are developing fast. To stay ahead, we need a focused and united aviation development plan, and to invest carefully for maximum impact,” he said.
Experts noted that Kazakhstan benefits from a strategic geographic location and rapidly developing aviation infrastructure.
Several factors strengthen the country’s position as a potential aviation hub:
- a growing regional aviation market
- expanding aviation workforce competencies
- flight safety standards exceeding European averages
- increasing investment in aviation infrastructure
Leasing becomes dominant financing model
Participants highlighted that aircraft leasing has become the dominant model for airline fleet management worldwide.
Assel Bagissova, Head of the AIFC Aviation Finance Hub, explained that leasing now plays a central role in the global aviation industry.
“Today, only 45 percent of the global commercial aircraft fleet remains owned by airlines, with leasing serving as the primary mechanism for fleet management. The leasing model provides higher returns relative to risk compared with other financing methods,” she said.
Industry experts also noted that leasing companies demonstrated strong performance in 2024, outperforming aircraft manufacturers in operational efficiency.
Experts discuss AIFC’s role in global leasing market
Participants also discussed how the AIFC could position itself within the global aviation leasing industry.
Jim Bell, Partner at Watson Farley & Williams LLP, noted that global leasing companies are currently concentrated in established hubs such as Ireland and the United States.
“AIFC should carefully consider its positioning as a leasing hub. Leasing companies already cluster in established centres like Ireland and the United States. However, by identifying a clear niche that offers advantages for extending operations in the region, AIFC could position itself as a complementary destination to these established hubs”.
According to experts, Kazakhstan’s regional specialization and growing aviation market could allow the AIFC to serve as an additional platform for leasing operations in Central Asia and the Caucasus.
Legal framework and international standards
Experts noted that the attractiveness of a jurisdiction for leasing companies depends on several key factors.
These include:
- a reliable legal framework
- a competitive tax regime
- a developed cluster of aviation services
The AIFC legal system is based on English common law, which is widely used in international financial transactions.
Kazakhstan has also concluded more than 55 tax treaties with other countries, creating favorable conditions for structuring cross-border aviation financing deals.
Additional legal protection for leasing operations is provided through Kazakhstan’s participation in the Cape Town Convention and the Aircraft Protocol, including the IDERA mechanism, which allows lessors to retain control over aircraft assets in case of default.
High safety standards support aviation growth
Kazakhstan’s aviation sector also benefits from strong safety standards.
According to the International Civil Aviation Organization, Kazakhstan complies with 82 percent of ICAO standards, which exceeds both global and regional averages.
Experts say this level of safety and regulatory reliability strengthens Kazakhstan’s attractiveness for aviation investors and international industry partners.
AIFC aims to build regional aviation finance hub
Participants concluded that geopolitical changes and shifting global transport routes are increasing the need for reliable aviation financing mechanisms.
In this context, the AIFC aims to serve as a platform for developing a modern aviation finance and leasing ecosystem in the region.
Experts believe the centre could play a key role in strengthening Kazakhstan’s position as a regional aviation hub while supporting the long-term development of the aviation industry in Central Asia and the Caucasus.
