Standard Chartered has closed an operating lease of five Boeing 737 MAX 8 aircraft with Akasa Air, the country’s newest airline which started operations mid-last year.
The deal was structured, financed and arranged by Standard Chartered Aviation Finance.
The first four aircraft were delivered between December 2022 and March 2023 and the fifth is scheduled for delivery in the second quarter of 2023.
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While the bank already provides Akasa Air with corporate banking solutions and services, this is the first aviation finance transaction with the airline.
Akasa Air currently has a fleet of 19 aircraft which flies to 16 destinations and does 110 flights per day. The low-cost carrier operates a single aisle, all economy configuration of the 737 MAX. The company is expecting to induct 6-7 aircraft in the current financial year followed by 12-16 units every year thereafter.
After the addition of the 20th aircraft, the company will be looking to ply on international routes, which will commence by the end 2023.
Asia Pacific and West Asia are the two regions the airline is expected to connect with India.
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Akasa Air has placed orders for 72 Boeing 737 MAX airplanes, powered by CFM fuel-efficient, LEAP-1B engines.
Completing six months of operation in February, the airline clocked a market share of 3% and a passenger load factor of more than 82%, according to data shared by the Directorate General of Civil Aviation.
Akasa is working on placing a ‘large order’ of aircraft to further expand its fleet as well as secure steady supplies of airplanes in the near future.