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IndiGo, Air India, and Akasa to Lease Over 200 Aircraft via GIFT City

IndiGo, Air India, and Akasa to Lease Over 200 Aircraft via GIFT City
Major Indian airlines, including IndiGo, Air India, Akasa Air, and Star Air, are poised to lease over 200 additional aircraft through their leasing subsidiaries based in Gujarat’s GIFT City. This move, announced at the Aircraft Leasing and Financing Summit 2.0 held in GIFT City, represents a nearly threefold increase in the number of commercial aircraft leased via the International Financial Services Centre (IFSC). The expansion highlights India’s growing ambition to establish itself as a global aviation hub.
Ambitious Fleet Expansion Plans
IndiGo’s leasing arm, InterGlobe Aviation Financial Services IFSC, aims to nearly double its fleet from 78 aircraft as of March 2026 to 150 by March 2027, managing assets valued between $3.5 billion and $4 billion. Air India’s AI Fleet Services plans to increase its leased aircraft from 16 to as many as 75 by the fiscal year 2027, with assets estimated at $2.5 billion to $3 billion. Akasa Air, having recently received approval to establish Akasa Air Leasing IFSC Pvt Ltd, intends to lease 60 aircraft over the next five years through GIFT City’s leasing framework. Star Air’s Ghodawat Aviation IFSC Pvt Ltd will add six to eight regional aircraft to the leasing pool.
This surge in leasing activity coincides with one of the largest fleet expansions globally by Indian carriers. Collectively, Indian airlines have placed orders for 1,631 aircraft, comprising 1,245 Airbus and 386 Boeing jets. IndiGo alone accounts for 901 of these orders, while the Air India Group has 541 aircraft on order. Akasa Air has separately committed to acquiring 189 Boeing 737 Max aircraft.
Current Leasing Landscape and Financial Backing
According to the International Financial Services Centres Authority (IFSCA), a total of 101 commercial aircraft have been leased through GIFT IFSC to date. This fleet includes 82 narrow-body, 14 wide-body, four ATR turboprops, and one cargo aircraft. IndiGo leads with 78 leased aircraft, followed by Air India with 16, while the remainder is leased by entities such as Vman Aviation Services and Willis Lease Finance India. The GIFT IFSC ecosystem now encompasses 203 aircraft and 84 aircraft engines, amounting to over 373 aviation assets. International banking units operating within GIFT IFSC have extended nearly $855 million in aviation debt financing.
Challenges Amid Rapid Growth
Despite the aggressive leasing strategy, the sector faces significant challenges. High operational costs remain a pressing concern, particularly as geopolitical tensions—such as those in the Middle East—continue to disrupt flight routes and elevate expenses. Market reactions have been sensitive to these developments; for example, IndiGo’s shares experienced a notable surge following reports of a potential U.S.-Iran ceasefire, reflecting investor optimism about easing geopolitical risks.
Competition among Indian carriers is intensifying, with airlines exploring new routes and airports to expand their reach. IndiGo recently commenced its first commercial flights from Noida Airport, while Air India has introduced performance-linked stock options aimed at incentivizing employees and accelerating its turnaround efforts. However, the shortage of wide-body aircraft in India remains a significant obstacle, as highlighted by IndiGo’s incoming chief, potentially limiting the sector’s capacity for long-haul growth.
Policy Perspectives and Future Outlook
At the summit, Civil Aviation Secretary Samir Kumar Sinha underscored the importance of access to low-cost, long-tenure domestic capital. He emphasized that as India’s aviation sector evolves from leasing towards large-scale aircraft ownership, securing affordable financing will be critical to sustaining growth and supporting the next phase of the country’s aviation financing journey.

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