New Delhi: Air India, On Friday, announced that it has successfully acquired the first Airbus A350-900 aircraft in India through a financing leasing deal with HSBC. It is the first finance deal the airline has completed since receiving its record-breaking orders for 470 aircraft.
Air India is the first scheduled airline in the nation to have purchased an aircraft from a company registered in Gujarat International Finance Tec-City (GIFT City), according to a statement made by the airline.
The deal was made possible by GIFT IFSC-registered financial business and AI Fleet Services Limited (AIFS), a fully owned subsidiary of Air India, the Tata group airline stated in a release. Air India omitted mentioning the transaction’s specifics.
The first wide-body aircraft to have been acquired through India’s first International Financial Services Centre (IFSC) is Air India’s first A350-900. The announcement further stated that GIFT IFSC-registered financial business and AI Fleet Services Limited (AIFS), a 100% subsidiary of Air India, assisted in the deal.
Dipesh Shah, executive director of the International Financial Services Centres Authority (IFSCA), stated that the organisation has been collaborating with the stakeholders to create legal frameworks that facilitate financing and leasing of aircraft.
Nipun Aggarwal, Chief Commercial & Transformation Officer, Air India, said in a statement that “this historic transaction marks the beginning of our aircraft leasing business from GIFT IFSC, as AIFS will be the primary Air India Group entity for wide-body aircraft financing, playing a pivotal role in the future aircraft financing strategy for us and our subsidiaries.”
Five of the six A350-900 aircraft the airline ordered are due for delivery by March 2024. In addition to these, the airline has definite orders for 470 new planes, including 34 A350-1000s, 20 787 Dreamliners, 10 777Xs, 140 A320 Neos, 70 A321 Neos, and 190 737MAXs.
To buy these planes, Air India went into purchase agreements with both Airbus and Boeing. The airline division of the Tata Group is now being streamlined. As part of this consolidation plan, Vistara and Air India will merge, while AIX Connect will unite with Air India Express. Singapore Airlines owns a 49% share in Vistara, a joint venture between Tatas and the airline.
Currently, Air India has 116 aircraft in its fleet, which includes 49 wide-body models which it currently flies. 27 B787-8s, 14 B777-300s, 8 B777-200LRs, 14 A319s, 36 A320 neos, 13 A321 ceos, and 4 A321 neos are all included in the total.
In addition, there are 14 B777-300s, 8 B777-200LRs, 14 A319s, 36 A320 neos, 13 A321 ceos, and 4 A321 neos in the total.
In the meanwhile, Air India Express and AIX Connect will combine, and Vistara will become a part of Air India as part of a process by which Tata Group is integrating its airline operations. Singapore Airlines owns a 49% share in the airline, and Tatas are partners in the enterprise known as Vistara.
