Air India lobbies government to axe IndiGo lease with Turkish carrier, source says-OxBig News Network

Air India has lobbied with the government officials to halt rival IndiGo’s leasing tie-up with Turkish Airlines. File
| Photo Credit: PTI

Air India has lobbied with the government officials to halt rival IndiGo’s leasing tie-up with Turkish Airlines, citing business impact as well as security concerns sparked by Istanbul’s support for Pakistan, according to a source and a document seen by Reuters.

Amid growing public anger in the country against Turkiye’s stance on Pakistan in the India-Pakistan tensions, people have been cancelling holidays. The government on Thursday (May 15) revoked the security clearance of Turkish ground handling service firm, Celebi, citing national security.

Since 2023, IndiGo has had a leasing arrangement with state-backed Turkish Airlines, which has provided two planes with pilots and some crew to IndiGo to operate on New Delhi- and Mumbai-to-Istanbul routes.

Air India has asked the Civil Aviation Ministry to disallow repeated extensions of the leasing deal, which must be renewed every six months, arguing it is benefiting Turkiye and hurting the country’s aviation sector, according to the source and a document Air India submitted to some government departments, seen by Reuters.

The aircraft leasing arrangement had led to “a substantial increase in seat capacity” to Turkiye, boosting that country’s tourism as well, the document said.

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Air India and Turkish Airlines, as well as Civil Aviation Ministry, did not respond to Reuters queries.

In a statement, IndiGo said its partnership with Turkish Airlines, which also includes a codeshare deal, “provides multiple benefits to Indian travellers”, boosts aviation growth and jobs, and also “enabled IndiGo to build its presence in the long-haul markets in Europe and the USA.”

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The aviation policies say the government can approve such leasing deals for six months in cases of “emergent” or “unforeseen” circumstances, but they can be extended.

The last extension for IndiGo for such leases is valid until May 31, and the carrier has already applied for an extension, said another source with direct knowledge.

IndiGo, like Air India and other global airlines, has faced delivery delays due to supply chain disruptions affecting planemakers Boeing and Airbus.