IndiGo has executed India’s first Japanese Operating Lease with Call Option (JOLCO) structure for the financing of two Airbus A320 aircraft, marking a significant development in the evolution of aircraft financing structures in India. The transaction reflects increasing adoption of globally established leasing models within the Indian aviation sector.
The transaction was routed through GIFT City, with IndiGo establishing a dedicated leasing subsidiary, InterGlobe Aviation Financial Services, within the IFSC. The development follows the notification of the CTC Rules, 2026 which align India’s legal framework more closely with international standards for protection of lessor interests, and is expected to facilitate greater participation of global financing structures in the Indian aviation market.
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