IndiGo shares in focus after DGCA extends lease for Turkish Airlines jets

Shares of InterGlobe Aviation, the operator of IndiGo, are likely to be in sharp focus on Friday after India’s aviation regulator DGCA granted the airline a six-month extension to operate two leased Boeing 777 aircraft from Turkish Airlines.

The extension, valid till February 28, 2026, was granted under a wet/damp lease arrangement, subject to certain regulatory conditions.

This development comes just three months after the DGCA had earlier issued a "final" three-month extension in May, warning the airline not to seek additional leeway. However, geopolitical sensitivities, peak-season travel demand, and the need for seamless international connectivity prompted the regulator to revisit its stance. IndiGo currently uses these aircraft for direct services between Delhi/Mumbai and Istanbul.


In a statement, IndiGo welcomed the decision, saying the extension allows the airline to maintain continuity and meet international travel demand despite global restrictions. “We acknowledge the acceptance of our request, which comes at a crucial time and will help mitigate losses to Indian aviation due to geopolitical limitations,” the airline said.

The aircraft are currently leased on a damp lease, where the lessor provides maintenance but not crew or insurance.

The DGCA has clarified that this extension should be used by IndiGo to consider alternative arrangements, including acquiring similar aircraft on a dry lease (where only the aircraft is leased) and operating them under its own Air Operator Certificate (AOC).

The watchdog also stated no further extensions would be considered beyond February 2026.

Notably, the geopolitical backdrop adds a layer of complexity. In May, following Türkiye’s public support for Pakistan and criticism of India’s anti-terror operations, India's Bureau of Civil Aviation Security (BCAS) revoked the security clearance for a Turkish ground handling firm, citing "national security" concerns. The development also led to travel advisories discouraging visits to Türkiye.

IndiGo, which currently operates two Boeing 777-300ER aircraft from Turkish Airlines, will now have a limited window to either acquire its own aircraft or explore lease-compliant alternatives for the India-Turkey route.

Additionally, investor attention is also expected to be driven by a large block deal executed on Thursday, wherein Gangwal and the Chinkerpoo Family Trust offloaded 7.56 million shares, amounting to a 1.96% stake in IndiGo.

The sale helped raise Rs 4,390 crore (approximately $501 million), further adding to the stock's trading volumes and institutional interest.

On Thursday, shares of IndiGo closed 5.3% lower at Rs 5,724.55 on the BSE.

Also read: Jio Financial AGM: Here are the top 5 takeaways and hints for RIL AGM

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)