Air India lobbies government to axe IndiGo lease with Turkish carrier: Report

Air India has approached the government 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 India against Turkey's stance on Pakistan in the India-Pakistan conflict, Indians have been cancelling holidays. The government on May 16 revoked 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 India's Civil Aviation ministry to disallow repeated extensions of the leasing deal, which must be renewed every six months, arguing it is benefiting Turkey and hurting India's aviation sector, according to the source and a document Air India submitted to some Indian government departments, seen by Reuters.

Air India on May 16 said it does not comment on competitors, as a media report claimed that it lobbied the government to cancel IndiGo’s lease with state-backed Turkish Airlines. 

In a statement, the airlines said, “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 aircraft leasing arrangement had led to "a substantial increase in seat capacity" to Turkey, boosting that country's tourism as well, the document said.

In a statement, IndiGo said its partnership with Turkish Airlines, which also include 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."

Indian 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.

Air India has in recent weeks also invoked national security concerns in its discussions with Indian officials, after India's strikes in Pakistan following a militant attack in Indian Kashmir saw Turkey publicly supporting Islamabad's "calm and restrained policies" in the crisis, the source added.