GIFT City emerges as India’s aircraft finance hub as Air India leasing arm secures $215 mn loan for 6 Boeing 777-300ERs

In a major boost to India’s aviation finance sector, Standard Chartered Bank and Bank of India have announced a $215 million term loan for AI Fleet Services IFSC Limited (AIFS), a leasing company owned by Air India and based in Gujarat International Finance Tec-City (GIFT City).

The seven-year loan will be used to finance six Boeing 777-300ER aircraft, which will be leased by AIFS to Air India. This marks the first-ever commercial aircraft financing deal done through a company registered in GIFT City, making it a landmark transaction for India’s aviation and financial ecosystem.

This deal clearly shows how GIFT City, Gandhinagar, is quickly becoming a hub for aircraft leasing and financing, something that was earlier mostly handled from places like Dublin or Singapore.

Sanjay Sharma, Chairman of AIFS and Chief Financial Officer of Air India, said the airline is in the middle of a major five-year transformation and will rely on GIFT City for financing part of its massive fleet order. “Air India has placed an order for 570 aircraft, and GIFT City will play an important role in financing these aircraft. We are happy to see GIFT City growing into a strong platform for aircraft leasing and financing in India,” he said.

Standard Chartered Bank and Bank of India led the deal and called it a major milestone for India’s aviation finance industry. Abhishek Pandey, Global Head of Transportation Finance at Standard Chartered, said the transaction reflects the bank’s ability to design innovative financial solutions for the aviation sector. “This deal highlights our experience in aviation finance and our commitment to supporting India’s fast-growing aviation industry,” he said.

PD Singh, CEO of Standard Chartered for India and South Asia, added that this was a “historic milestone” for both GIFT City and India’s aviation sector. “This financing deal for AI Fleet Services marks the first commercial aviation financing at GIFT City. It strengthens GIFT City’s role as a global aviation finance hub,” Singh said.

Bank of India also expressed pride in being part of the deal.

“This transaction underlines GIFT City’s growing importance as a global hub for aircraft financing. Aviation finance is a key part of India’s growth story, and we are happy to contribute to it,” the bank said in a statement.

Ashutosh Sharma, Chief General Manager at the International Financial Services Centres Authority (IFSCA), which regulates GIFT City said this successful transaction marks an important milestone for India.

“It shows that GIFT IFSC is becoming a strong and competitive financial ecosystem for services like aircraft leasing and financing,” he said.

For Air India, this financing deal is an important step in its ongoing Vihaan.AI transformation plan, which includes fleet expansion, modernization, and improved operations.

More broadly, this transaction opens the door for future aircraft financing deals to take place within India, reducing the country’s dependence on foreign leasing markets and helping GIFT City emerge as a major international aviation finance hub.

As India’s aviation sector continues to grow rapidly, GIFT City’s role in providing homegrown financial solutions is expected to become increasingly important for airlines, lessors, and investors alike.