In a fresh twist to India’s competitive aviation market, Air India has reportedly approached the central government, requesting a review of a wet lease arrangement between its rival IndiGo and Turkish Airlines. This move highlights the ongoing struggle for dominance in the burgeoning international flight segment, particularly the India-Europe-Middle East corridor, where both airlines are expanding aggressively.
But what exactly is happening, and what does this mean for flyers and the aviation industry? Let’s break it down.
What Is a Wet Lease?
Before diving into the issue, it’s important to understand what a wet lease is.
A wet lease is an arrangement where one airline (in this case, Turkish Airlines) provides aircraft, crew, maintenance, and insurance to another airline (IndiGo) for a fixed period. IndiGo, India’s largest airline by market share, uses this setup to operate wide-body aircraft on international routes without owning them directly.
While this is common in global aviation, it has stirred up controversy in India, primarily due to regulatory norms and competitive pressures.
Why Is Air India Objecting?
According to insider sources, Air India believes IndiGo’s wet lease agreement with Turkish Airlines violates or circumvents government policy, which typically allows wet leasing under exceptional circumstances and for a limited duration.
Air India, now under the Tata Group’s control, has been investing heavily in building a competitive international fleet. It has ordered over 470 aircraft from Airbus and Boeing, including wide-body planes like the Airbus A350s and Boeing 777s. The airline is also working hard to revamp its international service quality, aiming to reclaim its position as India’s flag carrier of choice.
With such plans in motion, the entry of Turkish Airlines aircraft into Indian international routes via IndiGo might be perceived as undermining Air India’s strategic roadmap. The concern is not just regulatory but also economic Air India fears losing traffic to a cheaper and faster capacity boost that IndiGo enjoys through this leasing model.
What’s at Stake in the IndiGo-Turkish Airlines Deal?
The IndiGo-Turkish Airlines partnership focuses on connecting Indian passengers to Europe and beyond through Istanbul. Turkish Airlines, a Star Alliance member with one of the world’s largest route networks, provides a significant advantage to IndiGo by giving it access to wide-body aircraft and premium international routes.
For IndiGo, which operates a predominantly single-aisle Airbus A320 family fleet, this partnership is a shortcut to global expansion. Without waiting years for aircraft deliveries or pilot training, IndiGo is already flying to places like Istanbul, Paris, and Amsterdam under this partnership.
For passengers, this has meant more affordable international fares and new route options but Air India believes the deal offers an unfair competitive edge due to the nature of the wet lease arrangement.
Government’s Position and Aviation Policy
As of now, there is no official statement from the Ministry of Civil Aviation, but insiders say the matter is under review. India’s civil aviation policy typically permits wet leasing only:
- In exceptional circumstances (like aircraft grounding or delays in delivery),
- For a short duration (typically six months, extendable under special cases),
- And with DGCA approval (Directorate General of Civil Aviation).
If IndiGo’s lease is found to be in violation of these clauses, it could face regulatory pushback. However, IndiGo has defended its lease agreements, stating they are within the permissible framework and are aimed at enhancing international connectivity for Indian passengers.
Growing Tensions in Indian Skies
This development comes at a time when India’s aviation sector is booming. With rising middle-class income, growing disposable incomes, and pent-up post-pandemic travel demand, airlines are rushing to increase their international footprint.
- Air India is banking on its massive aircraft order and legacy international routes.
- IndiGo is leveraging smart partnerships and operational efficiency to dominate both domestic and international routes.
- Meanwhile, Akasa Air and Vistara (soon to merge with Air India) are also eyeing global expansion.
In this scenario, every strategic decision like a leasing deal or code-share agreement can have significant ripple effects.
Industry Experts Weigh In
Aviation analysts believe this is more than just a policy issue it’s about market share and future positioning.
Air India sees the IndiGo-Turkish Airlines wet lease as a challenge to its long-haul international market, says an aviation expert. But IndiGo argues it is simply filling a gap that exists in the market due to limited wide-body capacity among Indian carriers.
Experts also note that Indian aviation needs more wide-body aircraft, and with long aircraft delivery times, wet leasing becomes a practical solution, especially for time-sensitive markets.
What Does This Mean for Flyers?
For regular passengers, this battle may not have an immediate impact. However, in the long term, it could influence:
- Fares on international routes
- Frequency and availability of flights to Europe and North America
- The level of service and aircraft quality
If the government sides with Air India and restricts wet leasing further, passengers might see fewer options or higher fares on popular international sectors. On the other hand, maintaining policy discipline could ensure a level playing field and push Indian airlines to build their own wide-body capacity.
Conclusion
The aviation turf war between Air India and IndiGo is heating up, and the wet lease dispute with Turkish Airlines is only the latest chapter in a high-stakes battle for the skies. As the government examines the lease agreement’s compliance with existing policies, the outcome could set a precedent for how Indian airlines expand internationally.
Whether it leads to policy changes or strategic pivots, one thing is clear India’s aviation space is undergoing a dramatic transformation, and passengers, competitors, and regulators are all watching closely.
For the full scoop and in-depth analysis, read the complete report on The Hindu
