Air India denies asking govt to block Indigo deal with Turkish Airlines

"Air India denies the gross misrepresentation and mischievous reporting on a competitor's biz model in certain media outlets. As a responsible corporate, we do not comment on competitors," it said

After reports surfaced that the Air India has urged Indian authorities to block IndiGo’s aircraft leasing partnership with Turkish Airlines, the carrier has clarified that it hasn't asked the govt to take any such step.   “Air India denies the gross misrepresentation and mischievous reporting on a competitor’s business model in certain media outlets. As a responsible corporate, we do not comment on competitors,” the firm said in a statement.  Earlier, the Reuters had reported that the Air India has urged Centre to block IndiGo’s aircraft leasing partnership citing potential threats to national security and adverse impact on domestic aviation.

 

Recently, there has been a major public backlash in India against Turkey, triggered by Ankara’s public support for Pakistan in the India-Pakistan conflict. In response to this sentiment, Indian travellers have reportedly begun cancelling trips to Turkey, the news report said.

 

  The Indian government on Thursday also revoked security clearance for Turkish ground handling firm Celebi, citing national security concerns.

 

Leasing arrangement under scrutiny

 

Since 2023, IndiGo has operated two aircraft leased from Turkish Airlines on routes connecting New Delhi and Mumbai to Istanbul. These aircraft include pilots and some crew provided by Turkish Airlines under the arrangement.

 

Air India has asked the Ministry of Civil Aviation not to permit continued extensions of this leasing deal, which is currently renewed on a six-month basis. According to the document submitted to government departments, Air India argues that the agreement disproportionately benefits Turkey and undercuts Indian carriers, the Reuters report said.

 

The arrangement has led to "a substantial increase in seat capacity" to Turkey, which Air India claims has also boosted the country’s tourism industry.

 

Celebi ban reflects growing political pressure

 

Union minister of state for civil aviation Murlidhar Mohol confirmed the government's move to ban Celebi on Thursday, writing on X: "We have received requests from across India to ban Celebi... Recognising the seriousness of the issue and the call to protect national interests, we have taken cognizance of these requests."

 

IndiGo defends its partnership

 

IndiGo, however, has defended its alliance with Turkish Airlines. In a statement, the airline said the codeshare agreement and leasing arrangement deliver “multiple benefits to Indian travellers”, help create jobs, and support aviation growth. The tie-up, IndiGo added, has enabled it “to build its presence in the long-haul markets in Europe and the US”.

 

The codeshare agreement with Turkish Airlines, which has been active since 2018, gives IndiGo access to several international destinations.

 

Extension request pending amid delivery delays

 

The current lease extension for the Turkish aircraft is valid until May 31. The report said that IndiGo has already applied for a further extension. The airline, like Air India and others globally, has faced aircraft delivery delays due to supply chain issues affecting Boeing and Airbus.

 

Under Indian aviation policy, such leasing deals are allowed for six months in cases of "emergent" or "unforeseen" needs and can be extended with government approval.

 

Air India, now owned by the Tata Group, has warned that IndiGo’s access to long-haul markets through this partnership poses a commercial threat to Indian carriers and disproportionately favours Turkish Airlines. The document noted that the codeshare “provides an extra revenue stream for Turkish Airlines, further enhancing their financial gains".

 

(With Reuters inputs)