IndiGo to Terminate Turkish Airlines Lease by August 31st amid India-Turkey Diplomatic Strain

IndiGo to Terminate Turkish Airlines Lease by August 31st 

Indian airline IndiGo will conclude its aircraft leasing agreement with Turkish Airlines by August 31, 2025, following a directive from the Directorate General of Civil Aviation (DGCA). This decision, announced on Friday, May 30th, comes amidst increasing concerns over Turkey's recent public support for Pakistan during a period of heightened regional tensions between India and its western neighbour.

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DGCA Mandates Lease Termination

IndiGo currently operates two Boeing 777-300ER aircraft sourced from Turkish Airlines under a damp lease arrangement, where the aircraft and cockpit crew are provided by the lessor, while IndiGo supplies its own cabin crew. These aircraft are primarily used for direct flights from Delhi and Mumbai to Istanbul. The original lease was set to expire on May 31st. While IndiGo had sought a six-month extension, the DGCA granted only a "one-time, last and final" three-month extension. This was contingent on an undertaking from IndiGo that they would terminate the lease by the new August deadline and would not seek further extensions.

Decision amidst Strained Diplomatic Relations

The regulatory decision is viewed against the backdrop of strained diplomatic relations between India and Turkey, following Turkey's vocal support for Pakistan and its condemnation of India's "Operation Sindoor" air strikes on alleged terror camps earlier this month. The Indian government's firm stance has also seen other related actions, such as the aviation security watchdog, BCAS, revoking the security clearance for Turkish ground handling firm Celebi Airport Services, citing national security interests. Additionally, travel associations and online portals have reportedly issued advisories cautioning against travel to Turkey.

While IndiGo had previously defended the commercial merits of its partnership with Turkish Airlines, IndiGo CEO Pieter Elbers stated on Friday, "We are compliant today and we will continue to comply with any government regulations." The mandated termination of IndiGo's lease agreement with Turkish Airlines underscores the significant impact that geopolitical developments can have on international commercial aviation partnerships. It reflects the Indian government's robust response to perceived unfavourable foreign policy alignments, prioritizing national and security interests in its regulatory decisions.