IndiGo's Aircraft Leasing Strategy: Navigating Regulatory Waters

The DGCA clarifies IndiGo's aircraft lease terms, extending five narrow-body aircraft leases from Turkey until March 2026 without further extension. This move is part of a strategy to address delays in new aircraft delivery and to effectively utilize international service rights amid global aviation leasing practices.

IndiGo's leasing of five narrow-body planes from Turkey has been given a final extension by the Directorate General of Civil Aviation (DGCA) until March 2026. The aviation regulator firmly stated that no further extensions will be granted beyond this period.

The DGCA clarified this decision following speculations about an extended lease timeline, emphasizing that the current arrangement is backed by an undertaking from IndiGo Airlines. This extension allows the airline to bridge the gap until its long-range A321-XLR aircraft, expected in February 2026, are operational.

The current leasing environment, marked by delays in new aircraft deliveries, sees IndiGo operating a total of 15 foreign leased planes, including seven from Turkey. The DGCA highlighted wet leasing as a strategic industry norm, enabling Indian carriers to fulfil passenger demand under international bilateral service agreements.

(With inputs from agencies.)