Axis Bank has announced that it has provided financial support to Air India for purchasing 34 training aircraft. The loan was issued from the bank’s branch at GIFT City, Gujarat, marking the first aircraft financing deal by a bank from the GIFT City International Financial Services Centre (IFSC). This move is expected to pave the way for more homegrown aviation finance solutions in India.
First Aircraft Financing Deal from GIFT City
According to Axis Bank, the financing was done through Air India’s wholly-owned subsidiary and leasing arm, AI Fleet Services. The airline has borrowed an undisclosed amount in USD for a long tenure to acquire the training aircraft.
These aircraft will be used at Air India’s upcoming pilot training institute in Amravati, Maharashtra, which is set to become one of India’s largest training centers for pilots. This initiative aligns with Air India’s broader plan to enhance its training infrastructure and develop skilled aviation professionals.
GIFT City’s Role in Aviation Financing
Rajiv Anand, Deputy Managing Director of Axis Bank, highlighted the significance of this transaction. He stated, “By leveraging its presence in the IFSC ecosystem, our GIFT City franchise has demonstrated its ability to offer homegrown financing solutions that strengthen India’s position in global aviation finance.”
Sanjay Sharma, Chief Commercial Officer of Air India, emphasized the airline’s long-term vision under its Vihaan.AI transformation plan. He noted that Air India has placed a large order of 570 aircraft as part of its five-year growth strategy, and financing through GIFT City will play a crucial role in supporting these acquisitions.
This financing deal marks an important step in India’s aviation sector, opening new opportunities for banks and financial institutions to support airline expansion through domestic funding sources.
