Air India announced on September 29 that it has completed the acquisition of its first A350-900 aircraft. The acquisition was made through a finance lease transaction with HSBC via the GIFT City, which is India’s first International Financial Services Centre (IFSC).
This is a significant milestone for Air India as it is also the first wide body aircraft to be leased through the GIFT City. The transaction was facilitated by Air India’s wholly-owned subsidiary AI Fleet Services Limited (AIFS).
Air India expects the first A350-900 aircraft to arrive in India by the end of this year. The acquisition of the A350-900 is part of Air India’s ambitious transformation plan.
According to the release, the airline has successfully acquired India’s first Airbus A350-900 aircraft through a finance lease transaction with HSBC. This marks the beginning of Air India’s aircraft leasing business from the GIFT IFSC.
Nipun Aggarwal, Air India’s Chief Commercial & Transformation Officer, stated that this landmark transaction plays a pivotal role in the future aircraft financing strategy for Air India and its subsidiaries. He also mentioned that AIFS will be the primary entity for wide body aircraft financing.
Dipesh Shah, executive director of the International Financial Services Centres Authority (IFSCA), applauded Air India’s initiative in establishing a finance company for aircraft leasing and financing at IFSC. He believes that this step will contribute to the development of IFSC as a preferred destination for aircraft leasing and financing in India and globally.
Air India has previously ordered a total of six A350-900 planes, with five of them scheduled for delivery by March 2024. In addition to the A350-900s, the airline has firm orders for 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777Xs, 140 A320 neos, 70 A321 neos, and 190 Boeing 737MAXs.
Air India’s current fleet consists of 116 planes, including 49 wide body aircraft. The merger of AIX Connect with Air India Express and the merger of Vistara with Air India are part of Tata Group’s plan to consolidate its airline business.
Vistara, a joint venture between Tatas and Singapore Airlines, will be merged with Air India. Tata Sons aims to strengthen its presence in the aviation industry through these mergers.
