Global banking group Standard Chartered on Monday said it has closed an operating lease of five new Boeing 737 MAX 8 aircraft with domestic carrier Akasa Air.

While the bank already provides Akasa Air with corporate banking solutions and services, this is the first aviation finance transaction with the airline, Standard Chartered said in a statement.

As part of the deal, structured, financed and arranged exclusively by Standard Chartered Aviation Finance, the first four aircraft were delivered to the airline between December 2022 and March this year, it said.

The fifth and final aircraft is scheduled for delivery in the second quarter of 2023, Standard Chartered added.

Akasa Air, which started operations on August 7 last year, had 19 Boeing 737MAX8 in the fleet as of March 25, according to an aircraft fleet tracking website.

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Standard Chartered has further strengthened its relationship with Akasa Air and supported its growth with these new additions to its fleet, said Kieran Corr, Global Head of aviation finance and CEO of Ireland, Standard Chartered.

“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,” he said.

Sale and lease-back is a financial transaction where one sells assets and leases them back on a long-term basis and continues to use those without owning them.

Akasa Air in November 2021 signed a deal with US aircraft maker Boeing Co to purchase 72 Boeing 737 Max 8 aircraft. 

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