Air India’s leasing subsidiary, AI Fleet Services IFSC Ltd (AIFS), has secured a $215 million term loan from Standard Chartered and Bank of India to finance six Boeing 777-300ER aircraft. The seven-year facility is routed through GIFT City, marking the first commercial aircraft financing structured via the financial hub.
Standard Chartered acted as the structuring bank, while both lenders underwrote the loan as mandated lead arrangers and bookrunners. According to Abhishek Pandey, Standard Chartered’s global head of transportation finance, the deal demonstrates the bank’s ability to structure jurisdiction-aligned financing while mobilising capital to support India’s aviation sector.
Pandey added that the deal structures capital solutions aligned with jurisdiction, mobilising new funds.
Sanjay Sharma, chairman of AIFS and CFO of Air India, said the transaction reflects GIFT City’s emerging importance in aircraft leasing. “This facility shows that India can increasingly finance its own aviation growth domestically,” he said.
The deal is part of Air India’s Vihaan.AI transformation programme, which includes an order for 470 aircraft, merger of regional carriers, and investment in training and maintenance facilities. AIFS will lease the aircraft back to Air India as part of the airline’s fleet renewal and expansion plans.
ET had reported in April that the Air India Group paid around $300 million to aircraft lessors through AIFS at GIFT City over the preceding two months, a person familiar with the development said. The payments underline the leasing arm’s growing role in managing the airline’s fleet financing.
GIFT City is India’s first operational greenfield smart city and international financial services centre. The city is positioning itself as a hub for aircraft financing, aiming to reduce reliance on traditional offshore leasing centres.
Air India will introduce 174 weekly flights under its Northern Winter Schedule starting 26 October 2025. International additions include more services on Delhi–Kuala Lumpur and Delhi–Denpasar (Bali), while domestic growth covers Rajasthan, Madhya Pradesh, Gujarat, and other high-demand routes.
The airline’s overall fleet exceeds 187 aircraft, spanning Airbus and Boeing models, reflecting ongoing investment in fleet modernisation and network expansion.
Standard Chartered acted as the structuring bank, while both lenders underwrote the loan as mandated lead arrangers and bookrunners. According to Abhishek Pandey, Standard Chartered’s global head of transportation finance, the deal demonstrates the bank’s ability to structure jurisdiction-aligned financing while mobilising capital to support India’s aviation sector.
Pandey added that the deal structures capital solutions aligned with jurisdiction, mobilising new funds.
Sanjay Sharma, chairman of AIFS and CFO of Air India, said the transaction reflects GIFT City’s emerging importance in aircraft leasing. “This facility shows that India can increasingly finance its own aviation growth domestically,” he said.
The deal is part of Air India’s Vihaan.AI transformation programme, which includes an order for 470 aircraft, merger of regional carriers, and investment in training and maintenance facilities. AIFS will lease the aircraft back to Air India as part of the airline’s fleet renewal and expansion plans.
ET had reported in April that the Air India Group paid around $300 million to aircraft lessors through AIFS at GIFT City over the preceding two months, a person familiar with the development said. The payments underline the leasing arm’s growing role in managing the airline’s fleet financing.
GIFT City is India’s first operational greenfield smart city and international financial services centre. The city is positioning itself as a hub for aircraft financing, aiming to reduce reliance on traditional offshore leasing centres.
Air India will introduce 174 weekly flights under its Northern Winter Schedule starting 26 October 2025. International additions include more services on Delhi–Kuala Lumpur and Delhi–Denpasar (Bali), while domestic growth covers Rajasthan, Madhya Pradesh, Gujarat, and other high-demand routes.
The airline’s overall fleet exceeds 187 aircraft, spanning Airbus and Boeing models, reflecting ongoing investment in fleet modernisation and network expansion.
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