Mumbai, Mar 7 (PTI) Axis Bank on Friday announced that Air India has borrowed from its GIFT City branch to buy 34 training aircraft.

This is the maiden aircraft financing transaction carried out by a bank from the GIFT City IFSC and paves the way for homegrown aviation finance solutions in the sector, according to a company statement.

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Air India's wholly-owned subsidiary and leasing arm 'AI Fleet Services' has borrowed the unspecified amount of funds in USD for a long tenor from the lender for the training aircraft buy, it said.

The aircraft will be deployed at Air India's upcoming pilot training institute in Amravati, Maharashtra which is set to be one of India's largest pilot training hubs.

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"By leveraging its presence in the IFSC ecosystem, our GIFT City franchise has demonstrated capabilities to offer home grown financing options that strengthen India's position in the global aviation landscape," the lender's deputy managing director Rajiv Anand said.

"Air India has embarked on a five-year transformation journey Vihaan.AI, placing an order for 570 aircraft, and GIFT City will be important for financing these aircraft," the Tata group-run carrier's chief commercial officer Sanjay Sharma said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)