Akasa Air establishes aircraft leasing unit at GIFT City, boosting India's aviation finance hub

Akasa Air has set up an aircraft leasing unit at Gujarat International Finance Tec-City, joining Indian carriers shifting financing structures to the country’s emerging aviation finance hub. The move comes as airlines secure capital for fleet expansion and New Delhi pushes to retain leasing business routed through overseas centres.

The airline on Friday said it had incorporated Akasa Air Leasing IFSC Pvt Ltd at GIFT City in Gandhinagar. The unit will support aircraft financing and leasing activities and eventually finance a majority of Akasa’s fleet. Aircraft leasing allows airlines to add planes to their fleets without buying the aircraft outright.

Akasa joins Air India and IndiGo in establishing leasing structures at GIFT City, part of the government’s effort to build a domestic aircraft financing ecosystem and reduce reliance on hubs such as Ireland and Singapore.


“GIFT City is a key enabler of Akasa Air’s next phase of growth,” Priya Mehra, chief of governance and strategic acquisitions at Akasa Air, said in a statement.

India is among the world’s fastest-growing aviation markets, though most aircraft operated by local airlines continue to be leased through overseas entities because of tax and regulatory advantages.

Akasa, which began operations in 2022, has ordered 226 Boeing 737 MAX aircraft and currently operates 38 planes.