Indian Oil Corporation Plans ₹1.66 Trillion Investment Over Five Years for Business Growth

India's DGCA has approved aircraft leasing deals between domestic airlines and Turkish carriers, including IndiGo and SpiceJet, after a policy shift following tensions. The reversal was reportedly due to operational constraints caused by Pakistani airspace restrictions. IndiGo received approval to extend its lease for two Boeing 777 aircraft from Turkish Airlines by six months, while SpiceJet secured clearance to lease five Boeing 737 aircraft from a Malta-based subsidiary of Turkish operator Corendon Airlines.

New Delhi, July 2, 2025 - The Indian government has signaled a softening of its stance on civil aviation ties with Turkey, approving aircraft leasing agreements between domestic airlines and Turkish carriers. The move comes after a period of heightened tensions, sparked by security concerns and geopolitical factors.

The Directorate General of Civil Aviation (DGCA) has approved leasing deals for IndiGo and SpiceJet, two of India's largest airlines. IndiGo received approval to extend its lease for two Boeing 777 aircraft from Turkish Airlines by six months, while SpiceJet secured clearance to lease five Boeing 737 aircraft from a Malta-based subsidiary of Turkish operator Corendon Airlines [1][2].

The reversal in policy was reportedly due to operational constraints caused by Pakistani airspace restrictions, which began in April following the Pahalgam attack. The DGCA approvals aim to safeguard the interests of homegrown airlines, which are currently hamstrung by these airspace curbs [1][2].

IndiGo argued that without the extension, it would struggle to maintain flights to Istanbul, giving Turkish carriers a competitive advantage. SpiceJet made a similar case, warning that the lack of leased aircraft could lead to route suspensions and higher fares [1][2].

The Modi government's toughening of its stand against ties with Turkey followed Operation Sindoor, during which it was discovered that many of the drones fired into India by Pakistan were of Turkish make. In May, the Bureau of Civil Aviation Security (BCAS) revoked the clearance of Turkish ground-handling company Celebi, forcing it to halt operations at nine Indian airports [1][2].

Senior aviation industry executives lauded the government's decision to uphold the commercial interests of local carriers, noting that policy decisions should be led by hard commercial and national interests rather than social media clamor [1].

References:
[1] https://m.economictimes.com/industry/transportation/airlines-/-aviation/govt-takes-a-u-turn-on-links-with-turkish-aviation-sector/articleshow/123591069.cms
[2] https://www.business-standard.com/industry/aviation/india-aircraft-leasing-turkey-indigo-spicejet-dgca-approval-125083000680_1.html