{"id":117262,"date":"2025-10-16T14:43:00","date_gmt":"2025-10-16T09:13:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=117262"},"modified":"2025-10-16T13:49:26","modified_gmt":"2025-10-16T08:19:26","slug":"air-india-leasing-arm-gets-215m-term-loan","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2025\/10\/16\/air-india-leasing-arm-gets-215m-term-loan\/","title":{"rendered":"Air India Leasing Arm Gets $215 Million Term Loan for Six Boeing 777s"},"content":{"rendered":"\n

AHMEDABAD\u2013<\/strong> Air India\u2019s (AI)<\/a> leasing arm, AI Fleet Services IFSC (AIFS), has secured a $215 million seven-year amortizing term loan from Standard Chartered Bank (StanC) and Bank of India (BoI).<\/p>\n\n\n\n

The loan will be used to finance six Boeing 777-300ER<\/a> aircraft that will be leased to Air India (AI) as part of its ongoing fleet expansion and renewal program.<\/p>\n\n\n\n

\"Air
Photo: Utkarsh Thakkar (Vimanspotter)<\/figcaption><\/figure>\n\n\n\n

Air India Secures $213 Million Loan<\/h2>\n\n\n\n

Standard Chartered acted as the structuring bank for the transaction, while both banks jointly underwrote the deal as Mandated Lead Arrangers and Bookrunners. <\/p>\n\n\n\n

The arrangement demonstrates growing confidence among global lenders in India\u2019s ability to facilitate large-scale aviation financing domestically.<\/p>\n\n\n\n

According to P.D. Singh, CEO of Standard Chartered Bank, India and South Asia, the term loan facility to AIFS will \u201cprovide a fillip to growing the aviation finance segment in India.\u201d <\/p>\n\n\n\n

Singh added in a statement in Business Standard<\/a> that the first-ever commercial aviation financing at GIFT City \u201creinforces its position as an aviation finance hub of global repute.\u201d<\/p>\n\n\n\n

The financing marks a major milestone for India\u2019s aviation ecosystem. It is the first-ever commercial aircraft financing transaction structured with a borrower based in Gujarat International Finance Tec-City (GIFT City). <\/p>\n\n\n\n

The deal highlights the growing potential of India\u2019s aviation finance sector and GIFT City\u2019s emergence as a global aviation finance hub.<\/p>\n\n\n\n

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Photo: Utkarsh Thakkar (Vimanspotter)<\/figcaption><\/figure>\n\n\n\n

AIFS Supports Air India\u2019s Fleet Renewal<\/h2>\n\n\n\n

The Tata Group-owned airline is in the midst of a five-year transformation journey, which includes a massive order for 570 new aircraft from Airbus and Boeing. <\/p>\n\n\n\n

The establishment of AIFS in GIFT City is a key part of Air India\u2019s strategy to optimize its fleet financing and leasing operations.<\/p>\n\n\n\n

Sanjay Sharma, Chairman of AIFS and Chief Financial Officer of Air India, said that GIFT City will play an important role in financing the carrier\u2019s growing fleet. <\/p>\n\n\n\n

He noted that the AIFS transaction marks an important step in building India\u2019s aviation finance capabilities, supporting Air India\u2019s ambition to become a world-class global airline.<\/p>\n\n\n\n

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Photo: Chris Lofting | Wikimedia Commons
https:\/\/commons.wikimedia.org\/wiki\/File:Air_India_Boeing_777-300ER_Lofting-2.jpg<\/figcaption><\/figure>\n\n\n\n

Strengthening India\u2019s Aviation Finance Hub<\/h2>\n\n\n\n

The transaction underscores the growing relevance of GIFT City in Gujarat as a preferred destination for structured aviation finance.<\/p>\n\n\n\n

With favorable regulations and a developing ecosystem for aircraft leasing and financing, the city is positioning itself as an alternative to established hubs like Dublin and Singapore.<\/p>\n\n\n\n

By closing this deal, Air India and its partners have set a precedent for future aviation finance transactions within India. <\/p>\n\n\n\n

The collaboration between Indian and international lenders like StanC could attract more global investors and lessors to GIFT City, ultimately boosting India\u2019s standing in global aviation finance.<\/p>\n\n\n\n

\"Air
Photo: Adrian Pingstone (Arpingstone) | Wikimedia Commons
https:\/\/commons.wikimedia.org\/wiki\/File:Air_india_b777-300er_vt-alj_arp.jpg<\/figcaption><\/figure>\n\n\n\n

Bottom Line<\/h4>\n\n\n\n

Air India\u2019s $215 million term loan through its GIFT City-based subsidiary, AIFS, is a landmark development in India\u2019s aviation finance sector. <\/p>\n\n\n\n

The deal with Standard Chartered and Bank of India not only supports Air India\u2019s ambitious fleet renewal plans but also strengthens GIFT City\u2019s position as a rising global aviation finance hub. <\/p>\n\n\n\n

This transaction sets the stage for more such collaborations as India\u2019s aviation market continues to expand.<\/p>\n\n\n\n

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Air India Eyes Major Order for 300 New Airbus and Boeing Aircraft<\/a><\/blockquote>