Through a financing leasing agreement with HSBC, Air India, the country’s top international airline, has successfully bought India’s first Airbus A350-900 aircraft. This is the first finance deal for Air India since it placed record-breaking orders for 470 aircraft.

As a result of the deal, Air India is the first scheduled carrier to buy an aircraft from a company with a GIFT City (Gujarat International Finance Tec-City) registration. The first widebody aircraft to have been leased through India’s first International Financial Services Centre (IFSC) is Air India’s first A350-900.

AI Fleet Services Limited (AIFS), a 100 percent subsidiary of Air India, and a financing firm with GIFT IFSC registration assisted in the deal.

“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,” said Nipun Aggarwal, Chief Commercial & Transformation Officer, Air India.

 

“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,” mentioned Dr. Dipesh Shah, Executive Director, IFSCA.

Six Airbus A350-900s belonging to Air India are set to arrive in India; the first is anticipated to do so before the end of the year, with the remaining four scheduled to arrive between March 2024 and March 2025. Along with the six Airbus A350-900 planes, Air India has placed definite orders for 470 new planes, including 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777X widebody planes, 140 Airbus A320neos, 70 Airbus A321neos, and 190 Boeing 737MAX narrowbody planes.

In June 2023, on the sidelines of the Paris Air Show, Air India inked purchase agreements with both Airbus and Boeing to procure these aircraft.