Air India acquires India's first A350-900 aircraft through GIFT City
Air India has completed acquiring India's first Airbus A350-900 aircraft through a finance lease deal with HSBC, facilitated by Gujarat International Finance Tec-City (GIFT City), India's premier International Financial Services Centre (IFSC). This transaction is the first lease of a widebody aircraft through GIFT City and the initial financing arrangement from Air India's massive 470-aircraft order placed earlier this year. The Tata Group-owned airline expects the first A350-900 to touch down in India by late 2023.
AI Fleet Services facilitates transaction
AI Fleet Services Ltd (AIFS), a fully-owned subsidiary of Air India, played a key role in making this transaction possible. AIFS will primarily handle widebody aircraft financing for the Air India Group, significantly influencing the company's future aircraft financing strategies and those of its subsidiaries. Nipun Aggarwal, Air India's Chief Commercial and Transformation Officer, said this landmark deal marks the start of their aircraft leasing business from GIFT IFSC.
IFSCA's role in aircraft leasing and financing
The International Financial Services Centres Authority (IFSCA) has been collaborating with various stakeholders to create regulatory enablers for aircraft leasing and financing. Dipesh Shah, IFSCA Executive Director, believes that Air India's finance company at IFSC will greatly contribute to establishing IFSC as a top choice for aircraft leasing and financing in India and around the world.
Air India's ambitious orders
Air India has ordered six A350-900 planes, with five slated for delivery by March 2024. The company's orders for 470 new aircraft also include 34 A350-1000s, 20 Boeing 787 Dreamliners, 10 Boeing 777Xs, 140 A320 neos, 70 A321 neos, and 190 Boeing 737MAXs. Air India inked purchase agreements with Airbus and Boeing in June to secure these aircraft.
Tata Group's airline business consolidation
The Tata Group is currently streamlining its airline business by merging AIX Connect with Air India Express and Vistara with Air India. Vistara is a partnership between Tata and Singapore Airlines, with Singapore Airlines owning a 49% stake in the airline. This consolidation aims to bolster the group's standing in the aviation industry and optimize operations across its various airline entities.
What's so exclusive about Airbus A350-900 aircraft?
The Airbus A350-900 aircraft, according to the company's website, is designed to be a quieter, cleaner aircraft delivering 25% less fuel burn and CO2 emissions per seat. It emits 50% less noise compared to older planes, and it also reduces NOx emissions. With larger fuel tanks and powerful engines, the A350-900 can fly longer distances, surpassing its Boeing competitor by 2,000 nautical miles (3,700 kilometers). It typically accommodates 300-350 passengers in a standard three-class setup.
