Standard Chartered, Akasa Air close operating lease of Boeing 737 Max 8

The first four MAX 8s were delivered between December 2022 and March 2023, the fifth is scheduled for delivery in the second quarter of calendar 2023

Standard Chartered Bank and Akasa Air have closed an operating lease of five new Boeing 737 MAX 8 aircraft together. The first four MAX 8s were delivered between December 2022 and March 2023 while the fifth aircraft is scheduled for delivery in the second quarter of calendar 2023.

The structuring and financing of the deal was arranged by Standard Chartered Aviation Finance. While the bank already provides Akasa Air with corporate banking solutions and services, this is the first aviation finance transaction with the airline.

“This Sale and Leaseback deal shows our commitment to the Indian aviation market and to support our clients’ transition to the most fuel-efficient aircraft,” said Kieran Corr, Global Head of Aviation Finance and CEO of Ireland, Standard Chartered.

Being a single-aisle, narrow-body aircraft, the Boeing 737 MAX has greater fuel efficiency, helps reduce CO₂ emissions, produces less noise and increases passenger capacity. “This agreement is a mark of confidence and further endorses Akasa Air’s robust growth and sustainable expansion plans,” said Bhavin Joshi, Co-Founder and SVP Leasing & Procurement, Akasa Air.

Akasa Air launched its first commercial flight on August 7, 2022 from Mumbai to Ahmedabad. It has placed a firm order of 72 Boeing 737 MAX airplanes, powered by CFM fuel efficient, LEAP-1B engines. The 737 MAX family aircraft deliver superior efficiency in reducing fuel use and carbon emissions, keeping in line with the demand of environmentally friendly companies in the changing times.