Ahmedabad: Akasa Air has set up a dedicated aircraft financing and leasing entity at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar as the airline looks to strengthen its long-term fleet financing strategy. The nearly four-year-old carrier on Friday announced the launch of Akasa Air Leasing IFSC Private Limited (AALI), which will operate from the International Financial Services Centre (IFSC) at GIFT City.
Strategic Move for Fleet Expansion
In a statement, the airline said the new entity will play a key role in advancing its aircraft financing plans by improving flexibility, enhancing cost efficiency, and enabling better access to global capital markets. The airline noted that AALI is expected to finance a majority of Akasa Air's aircraft over time while also strengthening onshore leasing capabilities in India.
Current Fleet and Orders
Akasa Air currently operates a fleet of 38 Boeing 737 MAX aircraft and has placed an order for 226 planes of the same family as part of its expansion plans. This order includes both firm commitments and options, reflecting the airline's ambitious growth trajectory in the Indian aviation market.
GIFT City as a Leasing Hub
GIFT City has emerged as a growing hub for aircraft leasing and financing activities in India, with major carriers such as Air India and IndiGo also setting up leasing entities there. The IFSC offers tax incentives and regulatory benefits, making it an attractive destination for aviation financing. Akasa Air's move aligns with the government's push to develop GIFT City as a global financial center.
The establishment of AALI is expected to reduce the airline's dependence on foreign lessors and provide greater control over its fleet management. This initiative also supports the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives by promoting domestic leasing capabilities.
