IndiGo (INGL.NS), opens new tab will terminate its leasing agreement with Turkish Airlines by August 31 after India’s aviation regulator said on Friday it would only extend the deal for three months, a move that will push the carrier to seek alternatives.
The agreement between the two airlines has come under public criticism in India after Turkey came out in support for Pakistan during the recent conflict between the two South Asian neighbours.
The pact has also been opposed by IndiGo’s rival Air India, which has lobbied the Indian government to end the deal, citing business impact and security concerns, Reuters has previously reported.
The Directorate General of Civil Aviation said it had denied IndiGo’s request for a six-month extension and approved only three months, citing passenger convenience, confirming an earlier Reuters report. The lease was due to expire on Saturday.
The regulator said IndiGo gave an undertaking that it will terminate the lease with state-owned Turkish Airlines by August 31 and will not seek a further extension. IndiGo was not immediately available for comment. It has previously defended the Turkish partnership, saying it offers multiple benefits to Indian travellers and boosts aviation growth and jobs.
Turkey’s support for Pakistan during the recent conflict has sparked a boycott of Turkish products, including chocolates, coffee and clothing in India.
IndiGo has had a codeshare partnership with Turkish Airlines since 2018 and has used that to connect travellers from India to a growing number of destinations in Europe and the U.S. in the last few years, making Istanbul an important hub for India’s largest domestic airline.
Since 2023, Turkish Airlines has leased to IndiGo two Boeing 777 aircraft with pilots and some crew. The aircraft currently operate on the Delhi-Istanbul and Mumbai-Istanbul routes, allowing IndiGo to carry more passengers, compared with the narrowbodies it operated previously.
IndiGo has been leasing aircraft to tide over aircraft delivery delays and expand internationally. The airline expects its first Airbus A350 by early 2027 and the long-range A321XLR this financial year.
In the absence of the leased 777s, IndiGo could go back to operating narrowbody aircraft on the two routes, or it could use widebody aircraft it has leased from Norse Atlantic Airways. It could also deploy the XLRs once they are delivered, analysts have said.
The regulator’s decision to give a limited extension comes after the Indian government earlier this month revoked the security clearance of Turkish ground handling service firm Celebi, citing national security, prompting a lawsuit from the Indian arm of the Turkish firm.
