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Air India lobbying government to cancel IndiGo lease with Turkish airline, source claims

Air India has asked Indian officials to stop IndiGo's leasing deal with Turkish Airlines. They cited business impacts as well as concerns about security sparked by Istanbul’s support of Pakistan.

Indians are canceling holidays due to the growing anger of Indians against Turkey's position on Pakistan during the India-Pakistan Conflict. Celebi is a Turkish ground handling services firm that was denied security clearance by the Indian government, citing national safety.

IndiGo, since 2023, has a leasing agreement with Turkish Airlines. Turkish Airlines has provided IndiGo with two planes, pilots, and crew for the New Delhi and Mumbai to Istanbul routes.

Air India asked India's Civil Aviation Ministry to stop extending the lease deal every six months. They argued that it was benefiting Turkey while hurting India's Aviation sector.

Document stated that the aircraft leasing agreement had resulted in "a substantial increase" in seat capacity to Turkey. This has also boosted tourism to this country.

Air India, Turkish Airlines and the Indian aviation ministry did not reply to our queries.

IndiGo stated that its partnership with Turkish Airlines which includes a codeshare agreement, "provides many benefits to Indian travellers", boosts the aviation industry and creates jobs. It also "enabled IndiGo's presence to grow in long-haul markets such as Europe and the USA."

In India, the Indian Aviation Policy states that in "emergent or "unforeseen" situations, the government may approve leasing agreements for six months. However they can be prolonged.

Another source who has direct knowledge of the matter confirmed that IndiGo had already requested an extension. The lease extension is valid until 31 May.

IndiGo has experienced delivery delays, as have other airlines around the world, due to disruptions in the supply chain affecting Boeing and Airbus.

INDIA-PAKISTAN TENSIONS

Source: Air India also raised national security concerns during recent discussions with Indian officials. This was after India's strikes on Pakistan in response to a militant attack against Indian Kashmir, which saw Turkey publicly support Islamabad's 'calm and restrained' policies in the crisis.

Pakistan denies any involvement in these attacks.

Murlidhar Mohol, India's junior Aviation Minister, said on X that the country had received numerous requests to ban Celebi. "We are aware of the seriousness of this issue and our responsibility to protect national interest."

IndiGo has a codeshare agreement with Turkish Airlines that is in place since 2018. This allows IndiGo to offer its customers many international destinations.

Sources from Air India, owned by Tata Group, have told officials that IndiGo's long-haul flights between India and the United States of America and Europe are causing the airline to lose business, while Turkey gains more.

The document said that "the codeshare partnership between IndiGo, Turkish Airlines and other airlines provides Turkish Airlines with an additional revenue stream which further enhances their financial gain." (Reporting and editing by Susan Fenton; Aditya Ganapavaram and Abhijith Ganahapavaram)

(source: Reuters)