Aircraft leasing is a process through which airlines bring in the aircraft from other leasing companies or airlines as part of their capacity addition. Globally, over 50% of the commercial aircraft fleet is on a lease basis. In India, over 70% of the airline fleet is on an operating lease basis, and the same trend is expected to be continued. In return for the leased asset, airlines pay huge fixed monthly rentals to the leasing companies and usually in USD. As regards, the airlines are exposing to foreign exchange fluctuation. The depreciation of the local currency as against the USD will bring additional financial burden and revenue leakage into Indian carriers and thus affecting the sustainable operations. Also, considering the growth factor of civil aviation, so far, India does not have aresident leasing finance industry. The objective of this paper is to analyze the impact due to the currency fluctuation, current strategies by which airlines take proactive measures against this fluctuation and the policy reforms and facilitation by Government, which can lead to ÄF€õVble business operations.