New Delhi, Dublin, London —Dentons, the world's largest global law firm, advised Mumbai-headquartered Axis Bank, one of the largest private sector banks in India, on the first USD-denominated aircraft financing transaction to be executed by an Indian bank.

The financing was effected through Axis Bank's International Banking Unit (IBU) at GIFT City, India's International Financial Services Centre (IFSC) based in Ahmedabad.

This landmark deal was completed for AI Fleet Services Ltd (AIFS), the GIFT City-incorporated leasing arm and wholly-owned subsidiary of Air India (a Tata Group Company).

The financing involves a long-term US dollar loan for the purchase of 34 training aircraft, which will be deployed at Air India's pilot training institute in Amravati, Maharashtra. This facility will become one of India's largest pilot training hubs, contributing to the country's expanding aviation infrastructure. 

The transaction marks a milestone along the development path for India's aviation finance sector, being a homegrown financing solution in a sector traditionally dominated by foreign lenders.

Historically, Indian airlines have relied on multinational banks for aircraft loans due to the lack of a strong domestic financing framework. Axis Bank's entry into this space provides a new pathway for Indian carriers to tap into Indian financing resources for their fleet expansion needs.

Both Axis Bank's and Air India's leadership in this space is a significant step toward realising the Indian government's ambition to promote GIFT City as an aviation finance centre and shows investors, including aircraft lessors, that Indian financial institutions are using international expertise to ensure deals are completed to expected international standards. 

Axis Bank was advised by a Dentons team led by Namita Das and Madhur Verma, partners in Dentons in New Delhi and GIFT City, with support from Donal Keane and Sarah Dyke, partners in Dentons' international aviation practice based in Dublin and London.

Commenting on the deal, Dentons partner Namita Das said: "It was a pleasure to be part of this pioneering transaction in the Indian aviation finance market. Dentons is the only law firm in India with a global aviation practice and Axis Bank could draw on our experience in international aviation finance transactions to ensure a highly successful result. Dentons as a firm is tremendously excited about the potential for Indian aviation and, with our well-integrated global aviation practice, we are excited to be on the start of this journey with the pioneers of aviation financing in India."

Dentons partner Donal Keane added: "Working with our Indian colleagues on this matter allowed us to leverage our longstanding international capabilities in aviation finance. We look forward to working with Axis and other Indian financiers and investors in the aviation sector as the Indian market continues to develop and expand."

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