The popularity of GIFT City has been climbing the charts for the last couple of years, and to give this journey a tremendous boost, Air India has announced to launch of its leasing subsidiary at this IFSC centre. This to-be-launched AI-owned leasing subsidiary is estimated to be an INR 7,253 crore project and will be recognized as AI Fleet Services IFSC Ltd. Presently, the domestic entity finances its aircraft leasing through countries like Singapore, Ireland and Hong Kong.

Air India will receive six A350-900s later this year, leased through AI Fleet Services IFSC Limited. The Chief Financial Officer, Vinod Hejmadi, and company secretary, Kalpana Rao, will take on senior management and board positions at the leasing entity, which will have an authorized capital of INR 500 million and a paid-up capital of INR 300 million. In addition to the six A350s, AI Fleet Services IFSC Limited will provide Air India and its subsidiary airlines with aircraft through operating and finance leases.

Earlier this year, Air India ordered a total of 470 aircraft from both Boeing and Airbus. While some planes will be purchased outright, most will be obtained through sale/lease-back agreements. The first planes to be delivered as part of this order are the A350-900s, originally intended for Russian airlines.

According to sources from a committee meeting on August 7th, the IFSC Special Economic Zone approval committee has projected that the value of services exported (inflow) will be INR 16.85 billion over five years, while the projected import (outflow) of foreign exchange will be INR 16.75 billion. This results in a net foreign exchange of INR 93 million. The estimated cost of the project is INR 72.53 billion.

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