Private sector lender Axis Bank today said it is the first Indian bank to execute an aircraft financing transaction through its International Banking Unit (IBU) at Gujarat’s GIFT City IFSC, according to a statement.
The deal was completed for AI Fleet Services Ltd (AIFS), the leasing arm and wholly owned subsidiary of Air India (a Tata Group Company). The deal involves a long-term USD loan for the purchase of 34 training aircraft, which will be deployed at Air India’s upcoming pilot training institute in Amravati, Maharashtra. Businesslinehad earlier reported that the order includes 31 single-engine aircraft from Piper Aircraft in the United States and 3 twin-engine aircraft from Diamond Aircraft in Austria. The Centre is trying to actively promote aircraft and ship leasing and financing operations at Gujarat’s GIFT City through tax incentives and regulatory relaxations
Sanjay Sharma, Chief Financial Officer, Air India said, “Air India has embarked on a five-year transformation journey, Vihaan. AI, placing an order for 570 aircraft, and GIFT City will be important for financing of these aircraft.”
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“In FY 2023-24, our leasing arm AI Fleet Services Ltd (AIFS) executed eight finance lease transactions worth more than USD 1 billion while the recent transaction for 34 training aircraft was one of the first transactions where an Indian bank has been involved in a long tenor, US dollar aircraft financing,” he added.