Tata Group-Owned Air India Completes Acquisition Of India's First A350 Aircraft Via GIFT City

Tata Group-owned Air India has completed the acquisition of its first A350-900 aircraft via a finance lease transaction with HSBC through the GIFT City, news agency PTI reported. This is the first wide-body aircraft to be leased through the GIFT City, the country's first International Financial Services Centre (IFSC).

In a press release, the airline stated that the transaction was facilitated by its fully-owned subsidiary AI Fleet Services Ltd (AIFS) and is also the first financing transaction from the orders for 470 aircraft that were made earlier this year.

The aviation giant has embarked on an ambitious transformation plan and expects the first A350-900 aircraft to reach India by the end of this year.

According to the release, the airline has successfully acquired India's first Airbus A350-900 aircraft through a finance lease transaction with HSBC.

"This landmark 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," Air India's Chief Commercial & Transformation Officer Nipun Aggarwal said.

The airline has placed orders for six A350-900 planes and five of them are scheduled for delivery through March 2024. Apart from these, the airline's firm orders for 470 new aircraft 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 to buy these aircraft with Airbus and Boeing in June this year.

Currently, Air India has a fleet of 116 planes, including 49 wide body aircraft.

Tata Sons acquired a 100% stake in loss-making Air India in January last year through its fully owned subsidiary, Talace Private Limited. Later, the company announced its plan to merge Air India and Vistara into one entity. The merger is expected to be completed by March 2024.

Vistara is a joint venture (JV) between Tatas and Singapore Airlines, which holds a 49% stake in the carrier.