{"id":43873,"date":"2023-09-04T18:44:58","date_gmt":"2023-09-04T13:14:58","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=43873"},"modified":"2023-09-10T12:42:46","modified_gmt":"2023-09-10T07:12:46","slug":"air-india-indigo-leasing-units-at-gift-city","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/09\/04\/air-india-indigo-leasing-units-at-gift-city\/","title":{"rendered":"Air India and IndiGo New Leasing Units at the GIFT City"},"content":{"rendered":"\n

AHMEDABAD-<\/strong> The Indian government’s initiative to position India as a key aircraft leasing hub is poised to receive a significant boost, as two major airlines, IndiGo (6E)<\/a> and Air India (AI)<\/a>, are establishing leasing units in GIFT City, Gujarat.<\/p>\n\n\n\n

IndiGo, with approximately 1,000 aircraft in its order pipeline, announced on Monday its intention to create a leasing unit to finance its aircraft, with an investment of Rs 30 crore.<\/p>\n\n\n\n

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Photo: avgeekwithlens\/ Harsh Tekriwal<\/figcaption><\/figure>\n\n\n\n

Air India IndiGo Leasing units at GIFT City<\/h2>\n\n\n\n

IndiGo will provide a corporate guarantee of up to $996 million to support its payment obligations. It is anticipated that IndiGo will initially lease approximately 10 Airbus <\/a>A320neo aircraft through this leasing subsidiary.<\/p>\n\n\n\n

Now owned by Tata, Air India has already established an aircraft leasing subsidiary within the special economic zone known as IFSC Gift City. <\/p>\n\n\n\n

The carrier’s six Airbus A350-900s, scheduled to start arriving later this year, will be procured under the entity named AI Fleet Services IFSC Limited for financial leasing. <\/p>\n\n\n\n

Earlier this year, Air India placed an order for 470 aircraft from Boeing and Airbus. The company has an authorized capital of Rs 50 crore and a paid-up capital of Rs 300 million.<\/p>\n\n\n\n

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Photo: By SounderBruce – Own work, CC BY-SA 4.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=76085961<\/figcaption><\/figure>\n\n\n\n

Global Leasing Hub<\/h2>\n\n\n\n

The government’s objective is to develop GIFT City into a global leasing hub similar to Dubai<\/a>, Ireland, and Singapore<\/a>. <\/p>\n\n\n\n

To attract global players, various financial benefits, including tax incentives like the waiver of Goods and Services Tax (GST) and Capital Gain Tax, have been announced by Finance Minister Nirmala Stitharaman.<\/p>\n\n\n\n

Dipesh Shah, Executive Director of Development, mentioned that with prominent airlines like IndiGo and Air India establishing leasing subsidiaries, this will enhance the SEZ’s reputation among global players. <\/p>\n\n\n\n

Up to this point, GIFT City has successfully executed leases for 109 smaller aircraft and helicopters within the Special Economic Zone.<\/p>\n\n\n\n

“GIFT IFSC provides a level playing field for offering aircraft leasing services,” he commented. “The initiatives taken by IndiGo and Air India will likely encourage other airlines to do the same,” Shah added.<\/p>\n\n\n\n

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Photo: Courtesy of creator<\/figcaption><\/figure>\n\n\n\n

Approx 90% Market Share<\/h2>\n\n\n\n

The Directorate General of Civil Aviation (DGCA)<\/a> has published the July 2023 domestic traffic figures. Both IndiGo (6E)<\/a> and Air India (AI)<\/a> are now close to having around 90% market share in the Indian Aviation Industry.<\/p>\n\n\n\n

In July 2023, IndiGo carried more than 76 lakh passengers, which eats up 63.4 percent of the pie.<\/p>\n\n\n\n

While Tata-owned Airlines<\/a>, including Air India (AI) and Air India Express (IX), Vistara (UK), and AirAsia India (I5), carried close to 31 lakh passengers. This combined has a market share of 25.8 percent.<\/p>\n\n\n\n

Subsequently, these two airline groups carried around 1 crore passengers in July 2023 by adding up the total numbers. They combined have a market share of 89.2.<\/p>\n\n\n\n

Further, Air India has been granted in-principle approval to import 470 aircraft, while IndiGo has been approved 500 aircraft.<\/p>\n\n\n\n

Feature Image by Harsh Tekriwal (@avgeekwithlens) \u2022 Instagram photos and videos<\/a><\/p>\n\n\n\n

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IndiGo Can Start New Flights between Surat and Diu<\/a><\/blockquote>