New Delhi- Sep- 29-2023 : Air India announced on Friday that it has successfully acquired India’s inaugural Airbus A350-900 aircraft via a finance lease arrangement with HSBC.
This transaction has marked Air India as the first scheduled airline to acquire an aircraft from an entity registered in Gujarat International Finance Tec-City (GIFT City). Furthermore, the A350-900 represents the initial widebody aircraft leased through India’s premier International Financial Services Centre (IFSC).
Airline officials stated, “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 at Air India, commented on this groundbreaking development, stating, “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.”
Aggarwal also expressed Air India’s commitment to supporting the Government of India’s efforts in establishing an aircraft leasing hub within GIFT IFSC, thus contributing to the growth of a robust aviation ecosystem in the country.
Dipesh Shah, Executive Director of IFSCA, acknowledged Air India’s role in advancing aircraft leasing and financing within IFSC, mentioning, “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 a long way in developing IFSC as a preferred destination for aircraft leasing and financing in India as well as globally.”
The arrival of the first of Air India’s six Airbus A350-900 aircraft is anticipated by year-end, with the remaining five scheduled for delivery through March 2024. Beyond these A350-900s, Air India’s extensive order book comprises 470 new aircraft, including 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777X widebody aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737MAX narrowbody aircraft.
The purchase agreements for these aircraft were formally inked by Air India with Airbus and Boeing during the Paris Air Show held in June earlier this year.
