India Restricts IndiGo's Lease of Turkish Aircraft Amid Tensions with Ankara
| 2025-05-31
Representative image.
India grants final 3-month extension to IndiGo for Turkish Airlines aircraft lease, citing diplomatic tensions and national security concerns.
The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, announced on Friday that it had approved a “last and final” extension until 31 August 2025 for IndiGo’s use of two Boeing 777-300ER aircraft leased from Turkish Airlines under a damp lease agreement. The airline had originally requested a six-month extension beyond the current lease, which was due to expire on 31 May.
In a damp lease arrangement, the lessor—in this case, Turkish Airlines—provides the aircraft, flight crew, and maintenance, while the lessee—IndiGo—supplies cabin crew and handles ground operations.
The DGCA said the short extension was granted “in order to avoid passenger inconvenience due to immediate flight disruption,” but made clear that no further renewals would be permitted. IndiGo has formally agreed to terminate the lease arrangement within the three-month period.
The decision follows increasing scrutiny of Turkish companies operating in India, triggered by Turkey’s vocal support for Pakistan during recent military escalations involving the two South Asian nations. Notably, India recently revoked the security clearance of Celebi Aviation, a Turkish ground-handling company operating at nine major Indian airports. Celebi has challenged the decision in the Delhi High Court.
Strategic Importance of the Lease
IndiGo has been using the leased Boeing 777 aircraft for its high-demand daily routes between Delhi, Mumbai, and Istanbul—routes that are part of its codeshare agreement with Turkish Airlines. These wide-body aircraft offer more than 500 seats each, allowing IndiGo to serve a larger number of international passengers compared to its usual narrow-body fleet.
The India-Turkey bilateral air services agreement allows a total of 56 flights per week between the two countries, split evenly between Turkish Airlines and IndiGo. While there is no seat cap per flight, larger aircraft give airlines an advantage in capturing more market share, especially on routes such as Istanbul, which serves as a key global transit hub.
With the lease termination mandated by August, IndiGo will either need to revert to using its smaller Airbus A321neo aircraft or explore alternative leasing options. The airline has previously operated these routes using narrow-body aircraft during periods of technical issues or regulatory delays.
IndiGo’s Response and Contingency Plans
IndiGo’s Chief Executive Officer Pieter Elbers said the airline operates in full compliance with the bilateral agreement between India and Turkey and is prepared to adjust its network if required.
“We make sure we have fallback plans in case of changes,” Mr Elbers said during a recent investor call. “Flights between India and Turkey are governed by the bilateral air service agreement. The operations are fully compliant with Indian regulations.”
Elbers noted that the flights to Istanbul remain popular among Indian passengers, many of whom use Turkish Airlines’ extensive network to connect to destinations in Europe, North America, and Central Asia.
Context: Strained Bilateral Ties
The lease extension decision comes at a time of heightened diplomatic tension between India and Turkey. Turkey has openly supported Pakistan in recent international forums and has supplied military drones used by Pakistan in operations near India’s western border.
These developments have prompted Indian authorities to reassess the role of Turkish firms in the country’s aviation and infrastructure sectors. While there has been no official embargo on Turkish entities, the cumulative effect of revoked clearances, curtailed commercial partnerships, and public pressure signals a tightening of India’s stance.
Turkish Airlines has long sought to expand its flight quota under the India-Turkey bilateral agreement, but successive Indian administrations have resisted such proposals, citing the need to support domestic carriers and preserve air traffic rights.
Outlook
IndiGo, India’s largest airline by market share, is actively expanding its international footprint and has announced plans to launch direct flights to several new destinations, including in Central Asia. However, regional geopolitical dynamics—such as Pakistan’s closure of its airspace to Indian carriers—have already forced the airline to suspend routes to cities like Tashkent and Almaty.
Industry analysts believe IndiGo will remain focused on securing wide-body capacity through other leasing arrangements, potentially avoiding further controversy by sourcing aircraft from non-Turkish partners. The outcome of Celebi’s court challenge and future diplomatic moves may further influence the landscape for India-Turkey aviation ties.
As the August deadline approaches, both the airline and Indian authorities will need to coordinate closely to ensure continued service on popular international routes without operational disruptions.
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