IndiGo shares in focus after DGCA extends lease for Turkish Airlines jets

IndiGo shares are expected to be in focus after the DGCA granted a six-month extension to operate two leased Boeing 777 aircraft from Turkish Airlines. The extension, valid till February 28, 2026, was granted under a wet/damp lease arrangement. IndiGo welcomed the decision, saying it will help mitigate losses to Indian aviation due to geopolitical limitations. The airline now has a limited window to either acquire its own aircraft or explore lease-compliant alternatives for the India-Turkey route.

India's largest low-cost carrier, IndiGo, has received a significant extension from the Directorate General of Civil Aviation (DGCA) to continue operating two leased Boeing 777-300 ER aircraft from Turkish Airlines. The extension, valid until February 28, 2026, comes under a wet/damp lease arrangement and was granted despite the regulator's previous directive to return the aircraft by August 31 [1].

The DGCA's decision to extend the lease period is seen as a critical move that will help mitigate losses in the aviation sector due to ongoing geopolitical tensions. IndiGo has been facing difficulties in deploying its narrowbody fleet to the Istanbul route, which lies beyond the range of its current aircraft. The extension will allow the airline to maintain its direct flights from Delhi and Mumbai to Istanbul during the peak travel season [2].

IndiGo expressed gratitude to the authorities for approving the extension and stated that it will continue to adhere to the relevant regulations and conditions laid down by the regulator. The airline has a limited window to either acquire its own aircraft or explore lease-compliant alternatives for the India-Turkey route to ensure continuity and stability in operations [3].

The extension comes amidst diplomatic tensions between India and Turkey, with Turkey backing Pakistan following the April 22 Pahalgam terror attack and Operation Sindoor on May 7. This geopolitical backdrop has led to various restrictions, including the revocation of security clearance for Turkish company Celebi Airport Services India Pvt Ltd by the aviation security watchdog BCAS [1].

IndiGo's shares are expected to be closely watched by investors as the extension provides a temporary respite but also highlights the need for long-term strategic planning. The airline's ability to manage its fleet effectively and adapt to changing geopolitical conditions will be crucial for its financial performance.

References:

[1] https://www.rediff.com/news/report/indigo-gets-dgca-extension-for-turkish-airlines-boeing-777-lease/20250829.htm

[2] https://www.business-standard.com/companies/news/indigo-gets-six-month-dgca-approval-to-keep-turkish-b777-aircraft-125082801530_1.html

[3] https://www.livemint.com/companies/news/indigo-receives-six-month-approval-to-operate-two-boeing-777-aircraft-leased-from-turkish-airlines-11756402739887.html