Air India urges government to halt IndiGo's Turkish Airlines lease

On May 16, the Indian government revoked the security clearance of Turkish ground-handling firm Celebi, citing national security risks
 

Air India lobbies to get lease of Indigo with Turkish Airlines cancelled  

Air India has reportedly lobbied the Indian government to block rival IndiGo’s leasing agreement with Turkish Airlines, citing both commercial and national security concerns, according to a source and documents reviewed by Reuters.

The request comes as public backlash intensifies in India over Turkey's vocal support for Pakistan amid the ongoing India-Pakistan conflict. The growing tensions have led to a spike in cancellations of Indian tourist bookings to Turkey. On May 16, the Indian government revoked the security clearance of Turkish ground-handling firm Celebi, citing national security risks.

Since 2023, IndiGo has operated two aircraft leased from state-run Turkish Airlines, complete with pilots and partial crew, on routes from New Delhi and Mumbai to Istanbul. These wet leases—approved by India’s Civil Aviation Ministry and renewed every six months—have allowed IndiGo to increase capacity on these key international routes.

 

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Air India has now asked the ministry to discontinue further extensions of this arrangement. In a formal communication submitted to government departments, the airline argued that the deal disproportionately benefits Turkey while undermining India's own aviation interests. The leasing agreement, according to the document, has “substantially increased seat capacity” to Turkey, aiding its tourism industry at a time of strained diplomatic relations.

While Air India declined to directly address the allegations, it pushed back against what it called misleading media reports. “Air India denies the gross misrepresentation and mischievous reporting on a competitor’s business model in certain media outlets. As a responsible corporate, we do not comment on competitors,” the airline said in a statement.

IndiGo, for its part, defended the partnership. In a statement, the airline noted that the deal, which also includes a codeshare agreement, brings "multiple benefits to Indian travellers,” creates jobs, and has helped IndiGo expand into long-haul markets in Europe and the U.S.

Government policy permits wet leasing of foreign aircraft under "emergent" or "unforeseen" circumstances, subject to periodic review and approval. IndiGo's current lease extension expires on May 31, and the airline has applied for another renewal, according to a source familiar with the matter.

 

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Both IndiGo and Air India, like other global carriers, have faced aircraft delivery delays due to ongoing supply chain issues affecting Boeing and Airbus.

In recent discussions with Indian officials, Air India has reportedly raised national security concerns, citing Turkey's public support for Pakistan during recent cross-border tensions. Following India's airstrikes in retaliation for a militant attack in Kashmir, Ankara praised Islamabad’s “calm and restrained policies,” further fueling diplomatic friction.

The outcome of the government's review could have implications not only for the aviation sector but also for broader India-Turkey relations in a volatile geopolitical climate.

Source: Business Today

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