Akasa Air has established an aircraft leasing unit at Gujarat International Finance Tec-City, joining a growing number of Indian airlines shifting financing structures to the country’s emerging aviation finance hub.
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Akasa Air has established an aircraft leasing unit at Gujarat International Finance Tec-City, joining a growing number of Indian airlines shifting financing structures to the country’s emerging aviation finance hub.
The airline said it has incorporated Akasa Air Leasing IFSC Pvt Ltd at GIFT City in Gandhinagar to support aircraft financing and leasing operations as it continues expanding its fleet.
The move comes as Indian carriers increasingly look to build domestic aviation financing capabilities while reducing dependence on overseas leasing centres such as Ireland and Singapore.
According to the airline, the newly established unit will eventually finance a majority of Akasa Air’s fleet.
Aircraft leasing allows airlines to induct aircraft without purchasing them outright, helping carriers manage capital requirements while supporting rapid expansion plans.
Akasa Air said the leasing subsidiary will support:
Priya Mehra said GIFT City would play an important role in the airline’s future expansion strategy.
“GIFT City is a key enabler of Akasa Air’s next phase of growth,” Mehra said in a statement quoted by ET Bureau.
Akasa Air joins IndiGo and Air India in establishing aviation leasing structures within GIFT City.
The development aligns with broader government efforts to create a domestic aircraft financing ecosystem capable of supporting India’s rapidly expanding airline industry.
India remains one of the world’s fastest-growing aviation markets, but a large share of aircraft operated by domestic carriers continues to be leased through overseas entities due to tax and regulatory advantages available in established global leasing centres.
The government has been encouraging airlines and financial institutions to utilise the International Financial Services Centre framework at GIFT City to retain aviation financing activity within India.
GIFT City has increasingly positioned itself as a domestic alternative to established global aviation finance jurisdictions.
The aviation finance ecosystem being developed there aims to support:
Indian policymakers have repeatedly highlighted the need to reduce dependence on foreign leasing jurisdictions while building institutional expertise in aviation finance.
The push has gained momentum as Indian airlines place large aircraft orders and expand both domestic and international operations.
Akasa Air commenced operations in 2022 and has rapidly expanded its fleet and network footprint within the Indian aviation market.
According to the company:
The scale of the order book reflects the broader expansion trajectory of India’s airline sector, which is witnessing strong passenger demand growth and rising capacity deployment.
The airline’s financing strategy through GIFT City is expected to support future aircraft induction plans while aligning with India’s evolving aviation finance ecosystem.
India’s aviation sector has traditionally relied heavily on overseas leasing structures, particularly through hubs such as Dublin and Singapore.
Industry executives and policymakers have argued that building a domestic leasing ecosystem could help:
The establishment of leasing subsidiaries by major Indian carriers reflects growing confidence in the regulatory and financial infrastructure being developed at GIFT City.
As airline fleet expansion accelerates across the country, aircraft financing and leasing are expected to become increasingly important components of India’s broader aviation growth strategy.
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