Akasa Air Establishes Entity for Aircraft Financing and Leasing in GIFT City
Akasa Air Establishes Entity at GIFT City to Strengthen Aircraft Financing Activities
Akasa Air, a nearly four-year-old carrier, has set up an entity at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar to bolster its aircraft financing and leasing activities. The airline has established Akasa Air Leasing IFSC Private Limited (AALI) at GIFT City, a strategic move aimed at advancing its aircraft financing strategy.
According to a release issued by the airline on Friday, the AALI office is expected to play a pivotal role in enabling greater flexibility, cost efficiency, and enhanced access to global capital markets. The entity is anticipated to finance a majority of the airline's aircraft over time while strengthening onshore leasing capabilities.
Akasa Air currently operates a fleet of 38 Boeing 737 MAX airplanes and has placed an order for 226 such aircraft. The establishment of AALI at GIFT City is a significant development, as Air India and IndiGo also have their aircraft leasing entities in the same location.
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| Airline | Number of Boeing 737 MAX Airplanes |
|---|---|
| Akasa Air | 38 |
| (ordered 226) | |
| Air India | N/A |
| IndiGo | N/A |
Note: Information about the number of Boeing 737 MAX airplanes for Air India and IndiGo is not provided in the original text.
Investor Takeaway
Akasa Air's establishment of an aircraft financing entity may have a positive impact on its operations.
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