The nation’s first scheduled airline, Air India, purchased an aircraft from a company with a Gujarat International Finance Tec-City (GIFT City) registration.
On Friday, Air India announced that it has successfully acquired the first Airbus A350-900 aircraft in India through a finance leasing deal with HSBC. It is the first financial transaction stemming from its staggering 470 aircraft orders.
Air India is the first scheduled carrier
Air India is the first scheduled carrier in the nation to have purchased an aircraft from a company registered in Gujarat International Finance Tec-City (GIFT City), according to a statement made by the airline.
The first widebody aircraft to have been leased through India’s first International Financial Services Centre (IFSC) is Air India’s first A350-900. The announcement also stated that GIFT IFSC-registered financial business and AI Fleet Services Limited (AIFS), a 100% subsidiary of Air India, assisted in the deal.
“This historic transaction marks the beginning of our aircraft leasing business from GIFT IFSC,” said Nipun Aggarwal, Chief Commercial and Transformation Officer, in a statement. “AIFS will be the main Air India Group entity for the financing of widebody aircraft, playing a significant role in the future aircraft financing strategy for us and our subsidiaries.”
“It is also a boost for India’s efforts to build a strong aviation ecosystem. As the nation’s flag carrier, Air India is pleased to support government efforts to establish an aircraft leasing hub in GIFT IFSC, Aggarwal continued.
The government of India has taken many measures to strengthen the aircraft leasing ecosystem at the IFSC in India, according to Dr. Dipesh Shah, executive director of IFSCA. IFSCA has been collaborating with the parties to create legal frameworks that facilitate financing and leasing of aircraft.
Shah continued, “Air India’s activities in establishing a finance firm with the aim of financing and leasing aircraft at IFSC will go a long way toward making IFSC a desirable site for financing and leasing aircraft in India and around the world.
By the end of this year, the first of Air India’s six Airbus A350-900s is anticipated to arrive in India, with the remaining five planned to be delivered by March 2024.
The airline has placed definite orders for 470 new aircraft, including the six Airbus A350-900s, 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777X widebody aircraft, 140 Airbus A320neos, 70 Airbus A321neos, and 190 Boeing 737MAXs.
At the Paris Air Show in June 2023, Air India and Airbus inked purchase agreements for the acquisition of these aircraft.