UPDATE – Today, IndiGo’s board approved the setting up of a wholly-owned subsidiary company to finance aviation assets. The Board also approved an investment of Rs 300 million in one or more tranches in the subsidiary apart from agreeing to provide a corporate guarantee of up to $996 million to secure payment obligations by the subsidiary (Stock exchange disclosure under Reg 30 reg Gift City) (bseindia.com).
Incidentally, Air India, which the salt-to-airline conglomerate took over, Tata has also initially set up a subsidiary in GIFT City to finance widebody aircraft. In June this year, AI signed an agreement to purchase 250 Airbus and 200 Boeing aircraft in a deal valued at over $70 billion.
