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AI Fleet Services IFSC Ltd (AIFS), the leasing arm of Air India, secured a USD 215 million loan from Standard Chartered and Bank of India to finance six Boeing 777-300ER aircraft. The seven-year term loan, routed through GIFT City, marks the first commercial aircraft financing via India's international financial hub. The financing supports Air India's Vihaan.AI transformation programme, which includes fleet renewal, mergers with regional carriers, and network expansion. Earlier payments via AIFS show growing domestic financing capability. GIFT City is emerging as a hub for aircraft financing, reducing dependence on offshore lessors.
AI Fleet Services IFSC Ltd (AIFS), Air India's aircraft leasing subsidiary, recently arranged a USD 215 million term loan to fund six Boeing 777-300ER planes. Standard Chartered and Bank of India provided the financing, with a seven-year tenure, routed through GIFT City. This deal is the first instance of commercial aircraft financing structured entirely through India's international financial hub. Advertisement
Standard Chartered acted as the structuring bank, while both banks served as mandated lead arrangers and bookrunners. Abhishek Pandey, global head of transportation finance at Standard Chartered, said the transaction reflects the bank's ability to structure jurisdiction-aligned financing while mobilising capital to support India's aviation sector.
Sanjay Sharma, Chairman of AIFS and CFO of Air India, pointed out that this facility highlights GIFT City's increasing role in aircraft leasing and financing. He said it shows India can now fund significant aviation growth domestically rather than relying solely on offshore lessors.
The financing forms a key part of Air India's Vihaan.AI transformation programme, which covers a 470-aircraft order, integration of regional carriers, and development of training and maintenance facilities. Under this arrangement, AIFS will lease the aircraft to Air India, supporting fleet renewal and network expansion.
Earlier this year, AIFS reportedly facilitated payments of about USD 300 million to aircraft lessors through GIFT City in just two months, reflecting the growing use of domestic financial channels for aviation funding. GIFT City, India's first operational smart city and international financial services centre, is positioning itself as a hub for aircraft financing, aiming to reduce dependence on foreign lessors and keep more capital within the country.
Air India's fleet currently exceeds 187 aircraft, including both Airbus and Boeing models. The airline plans to operate 174 weekly flights under its Northern Winter Schedule, adding international routes such as Delhi-Kuala Lumpur and Delhi-Denpasar, along with domestic growth across Rajasthan, Madhya Pradesh, Gujarat, and other high-demand regions. The loan will further strengthen its fleet modernisation and operational expansion.
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