IndiGo Explores Options to Extend Boeing 777 Wet Lease

IndiGo Airlines Negotiates Extension for Boeing 777 Wet Lease Amid Rising International Demand

Delhi, India – IndiGo Airlines, the largest low-cost carrier in the country, is actively engaged in discussions with India’s civil aviation ministry to extend its wet lease of Boeing 777 planes from Turkish Airlines. The urgency of the negotiations comes as the current lease period is set to expire this week, impacting IndiGo’s operational capacity for international routes.

Currently, IndiGo operates two wet-leased Boeing 777 aircraft on its routes from Delhi (DEL) and Mumbai (BOM) to Istanbul (IST). As IndiGo’s only widebody aircraft, the Boeing 777s play a crucial role in catering to the increasing demand for international travel from India.

IndiGo Boeing 777 Lease Status

IndiGo Airlines, which boasts a 62% share of the domestic market, secured the Boeing 777s to accommodate the surge in international travel. The aircraft commenced operations on the Delhi-Istanbul route on February 1, 2023, and the Mumbai-Istanbul route followed on May 17, 2023. However, sources indicate that IndiGo has yet to finalize an extension for the lease, raising concerns about its operational continuity.

An IndiGo spokesperson confirmed the airline’s efforts to negotiate with the ministry, stating, "We are exploring solutions to extend the wet lease, as our AOG (Aircraft On Ground)-related capacity constraints, while improving, are not entirely resolved." IndiGo plans to continue operating the Boeing 777s on the specified routes until November 14.

IndiGo’s CEO, Pieter Elbers, emphasized the positive impact of adding the Boeing 777s earlier this year, which boosted capacity on the Istanbul route and helped maintain competitive fares. The aircraft, featuring 24 business and 376 economy seats, can accommodate up to 400 passengers.

Capacity Challenges and Future Plans

The airline’s capacity has faced challenges due to ongoing issues with Pratt & Whitney engines, which have grounded a portion of its fleet. In October, IndiGo reported a decrease in grounded aircraft from the mid-70s to the high 60s, with a goal to reduce this number to below 60 by year-end. To further enhance its long-haul international operations, IndiGo has recently placed a firm order for 30 Airbus A350-900s.

DGCA Leasing Norms

The Directorate General of Civil Aviation (DGCA) has introduced draft regulations aimed at tightening leasing standards for Indian carriers. These new norms, released on September 12, 2023, stipulate that Indian airlines can only lease aircraft from countries with robust aviation safety oversight systems. This measure addresses the increasing reliance on wet leases due to short-term aircraft groundings caused by engine and supply chain issues.

Under the proposed rules, lessors must belong to International Civil Aviation Organization (ICAO) contracting states that meet stringent safety standards, including an effective implementation score of at least 80% in key areas such as personnel licensing and airworthiness. The draft also aims to extend the allowable duration of wet and damp leases from three months to an initial six-month term, with a potential for an additional six-month extension.

Recent Airbus A320 Leases

In addition to the Boeing 777s, IndiGo has received approval to extend the wet lease of 11 Airbus A320 aircraft from the DGCA. This extension is critical as the airline adapts to high passenger demand and ongoing AOG challenges. The A320 wet leases, initiated last year with SmartLynx Airlines, include crew and maintenance support, providing a temporary solution for IndiGo’s fleet expansion amid supply constraints.

IndiGo’s current fleet comprises over 20 A320ceo aircraft on damp and secondary leases, along with six Boeing 737s leased from Qatar Airways. As of October 2024, IndiGo operates a total of 384 aircraft, including 24 A320ceos, 200 A320neos, 112 A321neos, 45 ATRs, and three A321 freighters.

Chief Financial Officer Gaurav Negi recently reported that the number of AOGs is decreasing, with expectations to fall to the mid-40s by April 2025. As the situation stabilizes, IndiGo plans to phase out its damp-leased aircraft. For the second quarter, IndiGo’s operating lease liabilities amounted to ₹47,779.4 crore.

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