IndiGo to End Turkish Airlines Lease by August 31 After Final Extension

IndiGo, India’s largest airline by market share, will officially terminate its lease agreement with Turkish Airlines by August 31, following a directive from India's aviation regulator. The move marks the end of a strategic partnership that helped IndiGo connect Indian travelers to major European and American cities via Istanbul, but which has recently come under increasing political and regulatory pressure.

The Directorate General of Civil Aviation (DGCA), India's top aviation authority, refused IndiGo’s request for a six-month extension and instead granted a final three-month period. The existing lease, which involves two widebody Boeing 777 aircraft operated by Turkish Airlines along with their pilots and some crew, was set to expire at the end of May. IndiGo has now committed to ending the deal entirely by the end of August and has assured the regulator that no further extension will be sought.

The decision is partly rooted in growing diplomatic friction between India and Turkey. Ankara's public support for Pakistan during a recent conflict has stirred strong emotions in India, leading to calls for boycotts of Turkish products and services. This political backdrop intensified scrutiny over IndiGo’s leasing ties with Turkish Airlines.

The deal had already faced criticism from rival airline Air India, which reportedly lobbied the Indian government to scrap the arrangement. Air India cited concerns over national security and potential business disadvantages from IndiGo’s reliance on a foreign state-owned carrier.

The codeshare and leasing agreement with Turkish Airlines dates back to 2018 and had allowed IndiGo to offer long-haul international connections through Istanbul, using Turkish widebody aircraft to serve the high-demand Delhi-Istanbul and Mumbai-Istanbul routes. These aircraft allowed IndiGo to significantly boost capacity, compared to its own narrowbody Airbus fleet.

The partnership also helped IndiGo bridge the gap caused by delays in aircraft deliveries. The airline has been waiting on long-range aircraft to expand its global footprint, including the Airbus A321XLR, expected later this financial year, and the Airbus A350, which is set to arrive by early 2027.

With the Turkish lease set to end, IndiGo will now need to explore alternatives. It could revert to using its existing narrowbody fleet on the Istanbul routes, or shift to widebody aircraft it has leased from Norse Atlantic Airways. The arrival of the A321XLRs may also help maintain service levels on medium- to long-haul international sectors in the near future.

The regulator’s firm stance also follows another sensitive development: the Indian government’s revocation of security clearance for Celebi, a Turkish ground handling firm operating in India. The decision, citing national security concerns, led to a legal battle initiated by Celebi's Indian unit, further deepening the diplomatic chill.

For IndiGo, which has long touted the Turkish collaboration as beneficial to Indian travelers and job creation, this forced break signals a turning point. As the airline pivots to alternative international expansion strategies, it must now navigate both fleet constraints and geopolitical complexities shaping India’s aviation landscape.