A NEW BEGINNING AT GIFT CITY

With Air India and Indigo acquiring their new aircrafts from the GIFT City in Gandhinagar, Gujarat, leasing is likely to take off in a big way from India.

- NIDHI SHARMA

Air India has completed the acquisition of its first A350 aircraft through Gujarat International Finance Tec-City (GIFT City) India’s first and only International Financial Services Centre (IFSC).

On Sept 29,) Air India announced that it had completed the acquisition of its first A350900 aircraft, the first-ever wide-body aircraft to be leased through the GIFT City.

The aircraft has been leased on a finance lease basis which means that Air India will have an option to purchase the aircraft at the end of the lease period.

“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," said Nipun Aggarwal, chief commercial and transformation officer, Air India. The transaction for Air India was facilitated by AI Fleet Services Limited (AIFS), a wholly-owned subsidiary of Air India, and a GIFT IFSC-registered finance company.

Air India Chief Financial Officer Vinod Hejmadi and company secretary Kalpana Rao are slated to take senior management and board roles at the leasing entity, which will have an authorised capital of INR500 million (USD6 million) and paid-up capital of INR300 million (USD3.62 million). Beyond the six A350s, AI Fleet Services IFSC Limited will supply aircraft to Air India and its subsidiary airlines via operating and finance leases.