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India's largest domestic airline IndiGo will terminate its aircraft leasing agreement with Turkish Airlines by August 31, following a decision by India's aviation regulator to grant only a limited three-month extension to the controversial partnership.
The Directorate General of Civil Aviation on Friday denied IndiGo's request for a six-month extension of the lease deal, which was set to expire Saturday. The regulator cited passenger convenience in approving the shorter extension and confirmed that IndiGo provided an undertaking not to seek further extensions beyond the August deadline.
The decision comes as the partnership has faced mounting criticism in India following Türkiye's support for Pakistan during recent tensions between the South Asian neighbors. The political fallout has sparked consumer boycotts of Turkish products across India, including chocolates, coffee and clothing.
Air India, IndiGo's competitor, has lobbied the Indian government to end the deal, citing business impact and security concerns, according to previous reports. The partnership has become a flashpoint as geopolitical tensions influence commercial aviation relationships in the region.
Since 2023, Turkish Airlines has leased two Boeing 777 aircraft to IndiGo, complete with pilots and crew. The wide-body aircraft currently operate on the Delhi-Istanbul and Mumbai-Istanbul routes, allowing IndiGo to carry significantly more passengers compared to the narrow-body aircraft it previously used on these routes.
The lease arrangement has been part of a broader codeshare partnership between the two airlines that began in 2018. This collaboration has enabled IndiGo to connect Indian travelers to an expanding network of destinations across Europe and the United States, with Istanbul serving as a crucial hub for the carrier's international expansion.
IndiGo was not immediately available for comment but has previously defended the Turkish partnership, stating it offers multiple benefits to Indian travelers while boosting aviation growth and employment.
The termination will force IndiGo to seek alternative arrangements for its international routes. Industry analysts suggest the airline could revert to operating narrow-body aircraft on the two routes or deploy wide-body aircraft it has leased from Norse Atlantic Airways. The carrier also expects delivery of long-range Airbus A321XLR aircraft this financial year and its first Airbus A350 by early 2027.
IndiGo has relied on aircraft leasing to manage delivery delays and support its international expansion plans. The airline's need for alternative arrangements comes as it navigates both operational challenges and the complex intersection of business and politics in the aviation sector.
The regulator's decision follows the Indian government's recent revocation of security clearance for Turkish ground handling firm Celebi, citing national security concerns. The move prompted a lawsuit from the Indian arm of the Turkish company, highlighting the broader strain in India-Türkiye business relationships.
The August deadline will mark the end of a partnership that has been instrumental in IndiGo's international growth strategy, while reflecting how regional political tensions increasingly influence commercial aviation deals.
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