IndiGo might shift from sale and leaseback model

Owning aircraft may impact dividend payout

In a change of strategy, IndoGo, the country's largest domestic air carrier, has signalled it would own aircraft rather than using the sale and leaseback model.

The reason given is with the A320neo being a new-generation plane, with fuel saving technology, it would like to own the aircraft for a longer period. The current average age of IndiGo's fleet is around six years.

"Most of our aircraft are on a short-term operating lease. We may choose to operate the A320neo for a longer period. Hence, there is a shift in strategy," said Rohit Philip, chief financial officer, in