The Indian airline, IndiGo, has decided to terminate its leasing agreement with Turkish Airlines by August 31, after India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), approved only a three-month extension. The agreement has been under public criticism in India due to Turkiye’s support for Pakistan during the recent conflict. The DGCA cited passenger convenience as the reason for denying IndiGo’s request for a six-month extension.
The leasing agreement between IndiGo and Turkish Airlines has been in place since 2023, with Turkish Airlines leasing two Boeing 777 aircraft to IndiGo, along with pilots and crew. The aircraft operate on the Delhi-Istanbul and Mumbai-Istanbul routes, allowing IndiGo to carry more passengers. However, the partnership has faced opposition from Air India, a rival airline, which has lobbied the Indian government to end the deal, citing business impact and security concerns.
India’s decision to limit the extension of the leasing agreement is seen as a reflection of the strained relations between India and Turkiye. Turkiye’s support for Pakistan during the recent conflict has sparked a boycott of Turkish products in India, including chocolates, coffee, and clothing. The Indian government has also revoked the security clearance of Turkish ground handling service firm Celebi, citing national security concerns.
In the absence of the leased 777s, IndiGo may have to operate narrow-body aircraft on the two routes or use wide-body aircraft it has leased from Norse Atlantic Airways. The airline is also expecting the delivery of its first Airbus A350 by early 2027 and the long-range A321XLR this financial year. Analysts believe that IndiGo could deploy the XLRs once they are delivered, or use other alternatives to maintain its international operations.
The termination of the leasing agreement is likely to have significant implications for IndiGo’s international operations, as Istanbul has become an important hub for the airline. However, the airline has defended its decision, citing the need to prioritize national interests and security concerns. The move is seen as a reflection of the complex geopolitics of the region and the impact of diplomatic tensions on business relationships.