Air India Group recently made significant strides in expanding its aircraft fleet, marking a milestone in Indian aviation history. Campbell Wilson, the Managing Director and CEO of Air India, announced the acquisition of three new aircraft - Boeing 737MAX and the A350, with the first Airbus A350-900 secured through a finance lease transaction via Gujarat International Finance Tec-City (GIFT City). This acquisition sets a remarkable precedent as the first scheduled carrier to obtain an aircraft from an entity registered in GIFT City, facilitated by HSBC.

Wilson enthusiastically shared this news with Air India’s employees, highlighting the importance of these additions to the fleet. Two Boeing 737MAX aircraft were earmarked for Air India Express, signifying a significant expansion for the Air India Group. This development is particularly notable because it introduces aircraft types that are entirely new to the Air India Group and even ushers in a type previously unseen in Indian aviation.

Air India’s strategic expansion into GIFT City’s International Financial Services Centre (IFSC) was enabled through AI Fleet Services Limited (AIFS), a wholly-owned subsidiary of Air India. Nipun Aggarwal, Chief Commercial & Transformation Officer of Air India, emphasised the historic nature of this transaction. AIFS is set to become the primary financial entity for widebody aircraft financing within the Air India Group, playing a pivotal role in their future aircraft financing strategies. This move aligns with the broader goal of strengthening India’s aviation ecosystem.

Wilson noted that this transaction marked the first instance of a widebody aircraft being leased through India’s first IFSC. It underscores Air India’s commitment to bolstering India’s aviation sector by investing in its fleet, training, and now, innovative financial strategies like those in GIFT City.

While the Airbus A350 is currently undergoing interior and technical modifications, along with a fresh coat of the new Air India livery, it is expected to grace Indian skies in December.

Dr. Dipesh Shah, Executive Director of IFSCA, commended the Indian government’s efforts to nurture the aircraft leasing ecosystem at IFSC. This groundbreaking move by Air India to establish a finance company for aircraft leasing and financing at IFSC aligns with the government’s vision to make IFSC a preferred global destination for such transactions.

Air India’s aircraft acquisitions are poised to significantly enhance its fleet. The delivery schedule includes the arrival of the first of six Airbus A350-900 aircraft by year-end, with subsequent deliveries planned until March 2024. Moreover, Air India has firm orders in place for 34 A350-1000, 20 Boeing 787 Dreamliners, 10 Boeing 777X widebody aircraft, 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737MAX narrowbody aircraft. These agreements, signed during the Paris Air Show in June 2023, solidify Air India’s pivotal role in the development of India’s burgeoning aircraft leasing and financing sector, both domestically and on the global stage.

Related Topics
comment COMMENT NOW