Air India has achieved a significant milestone in its modernization journey by acquiring its first Airbus A350-900 jet through a finance lease transaction with HSBC, from GIFT City.
Air India, India’s flagship carrier, has achieved a significant milestone in its modernization journey by successfully acquiring its first Airbus A350-900 aircraft. This achievement comes through a finance lease transaction with HSBC, marking the commencement of Air India’s aircraft leasing business from Gujarat International Finance Tec-City (GIFT City). This transaction is not only a momentous step for Air India but also a historical one for the Indian aviation industry.
In this historic deal, Air India becomes the first scheduled carrier globally to acquire an aircraft from an entity registered in GIFT City, India’s first International Financial Services Centre (IFSC). Furthermore, this marks the first-ever leasing of a widebody aircraft through an IFSC in India. The transaction was facilitated by AI Fleet Services Limited (AIFS), a wholly-owned subsidiary of Air India and a finance company registered in GIFT IFSC.
Nipun Aggarwal, Chief Commercial & Transformation Officer, Air India said, “This landmark transaction marks the beginning of our aircraft leasing business from GIFT IFSC, as AIFS will be the primary Air India Group entity for widebody aircraft financing, playing a pivotal role in the future aircraft financing strategy for us and our subsidiaries. It is also a shot in the arm for the development of a robust aviation ecosystem in India. As a flag-bearer of the country, Air India is happy to support the Government of India’s efforts to develop an aircraft leasing hub in GIFT IFSC.”
This achievement is the result of concerted efforts by various stakeholders, including the Government of India and the International Financial Services Centre Authority (IFSCA), which have taken initiatives to develop the aircraft leasing ecosystem at IFSC in India. Dr. Dipesh Shah, Executive Director of IFSCA, emphasized the importance of these steps, noting that they would contribute to the development of IFSC as a preferred destination for aircraft leasing and financing, not only in India but also on a global scale.
Air India’s Airbus A350-900 is set to arrive in India by the end of this year, with five more aircraft scheduled for delivery through March 2024. In addition to these six Airbus A350-900 aircraft, Air India has firm orders for a whopping 470 new aircraft, comprising various models such as A350-1000, Boeing 787 Dreamliners, Boeing 777X widebody aircraft, Airbus A320neo, Airbus A321neo, and Boeing 737MAX narrowbody aircraft. These orders were secured by Air India during the Paris Air Show held in June 2023.
“Govt. of India has taken several initiatives to develop the aircraft leasing ecosystem at IFSC in India. IFSCA has been working with the stakeholders to develop regulatory enablers for aircraft leasing and financing. The steps taken by Air India by establishing a finance company for the purpose of aircraft leasing and financing at IFSC will go long way in developing IFSC as a preferred destination for aircraft leasing and financing in India as well as globally,” said Dr. Dipesh Shah, Executive Director, IFSCA.
Founded by the legendary JRD Tata in 1932, Air India has played a pioneering role in India’s aviation sector. Over the years, it has established a robust domestic network and operates non-stop flights to numerous international destinations, connecting India with the USA, Canada, UK, Europe, Far East, South-East Asia, Australia, and the Gulf. After 69 years as a government-owned enterprise, Air India and Air India Express rejoined the Tata group in January 2022.
Air India is currently undergoing a comprehensive five-year transformation roadmap known as Vihaan.AI. This initiative aims to transform Air India into a world-class airline with an Indian heart. The first phase of this transformation, the “taxi phase,” focused on addressing fundamental aspects such as returning long-grounded aircraft to service, talent acquisition, technology upgrades, and enhancing customer care initiatives.
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As a member of the Star Alliance, the largest global airline consortium, Air India offers seamless connectivity and top-notch facilities to passengers worldwide. This historic aircraft acquisition reaffirms Air India’s commitment to modernizing its fleet and strengthening its position as a leading global airline.
