Beginning November 15, IndiGo intends to substitute the Boeing 777 with A321 aircraft for its routes to Istanbul.
IndiGo is collaborating with the civil aviation ministry to investigate the potential for extending the wet lease of wide-body Boeing 777 aircraft from Turkish Airlines, as the current lease term is set to conclude this week.
At present, IndiGo is operating two wet-leased Boeing 777 aircraft for flights departing from Delhi and Mumbai to Istanbul. These are also the only two wide-body planes in the airline’s fleet, which holds the title of India’s largest carrier with a domestic market share exceeding 62 percent.
These aircraft were wet-leased to address the increasing demand for international travel originating from India.
B777 Operations
IndiGo commenced its first wide-body Boeing 777 operations on the Delhi-Istanbul route on February 1, 2023, and initiated the Boeing 777 service on the Mumbai-Istanbul route on May 17, 2023.
Informed sources indicate that the airline has not yet received an extension to continue the wet lease of the aircraft.
When approached, an IndiGo spokesperson stated on Monday to PTI that the airline is “working with the ministry to explore options for extending the wet lease as our AOG (Aircraft On Ground) related capacity issues, while improving, are not completely resolved.”
The two Boeing 777 aircraft will be operated by IndiGo until November 14 for the flights connecting Delhi and Mumbai to Istanbul.
Substituting for the A321
Starting November 15, the airline will be using A321 aircraft for these routes, as per information available on the flight tracking platform Flightradar24.com.
A wet lease of an aircraft by an Indian carrier entails leasing a foreign aircraft, which includes crew, maintenance, and insurance. The aircraft is also operated under the control of the foreign operator (lessor) and is subject to the regulatory requirements of the respective foreign civil aviation authority.
The safety oversight of these operations falls under the jurisdiction of the relevant foreign authority, limiting the role of Indian carriers to the commercial aspects of operations.
While announcing the addition of the second Boeing 777 aircraft to its fleet in May 2023, IndiGo CEO Pieter Elbers mentioned that the new aircraft would not only enhance capacity on the route but also contribute to keeping ticket prices affordable.
According to the airline, the Boeing 777 aircraft can accommodate 400 passengers in a dual-class layout, featuring 24 business class and 376 economy class seats.
Due to Pratt & Whitney engine issues, the airline has grounded several aircraft, affecting its overall capacity.
Last month, IndiGo, which became India’s first airline to operate a fleet of over 400 aircraft, reported that the number of grounded planes had decreased to the high 60s from the mid-70s, with expectations to drop below 60 by year-end.
As of the end of September, the carrier maintained a fleet of 410 aircraft.
As part of expanding its international network to long-haul destinations, IndiGo, in May this year, placed a firm order for 30 Airbus A350-900 aircraft.
What is a wet lease?
Last year, the DGCA granted IndiGo permission to incorporate 11 A320 aircraft on a wet lease from SmartLynx Airlines. In a wet lease arrangement, the aircraft comes with its crew and engineers. This is a temporary solution to address supply-side challenges.
Currently, the airline operates over 20 A320ceo aircraft on damp and secondary leases, in addition to six Boeing 737s sourced from Qatar Airways.
As of November 4, IndiGo’s operational fleet comprised 384 aircraft, including 24 A320ceo, 200 A320neo, 112 A321neo, 45 ATR, and three A321 freighters.
In response to a query from Businessline, Abhijit DasGupta, senior vice president of network planning and revenue management at IndiGo, stated, “As we continue our strategy to alleviate supply chain difficulties and adhere to our long-term capacity objectives, we are in the process of extending leases for several aircraft.”
“This will guarantee that we have sufficient capacity to accommodate the rising demand. We will persist in collaborating with the OEMs and executing strategies to minimize the impact of AOGs on our capacity during FY24-25.”
Aircraft shortage
Recently, the airline has encountered significant aircraft shortages primarily due to groundings linked to the powder metal problem in the Pratt and Whitney engines that power the A320neo aircraft.
In the second quarter results, IndiGo’s management indicated that aircraft groundings had adversely affected the airline’s performance. The airline reported a net loss of ₹987 crore for the quarter under review, contrasting with a net profit of ₹189 crore during the same quarter of the previous year.
“In a typically weaker second quarter, results were further hindered by challenges related to groundings and fuel expenses,” remarked IndiGo’s Chief Executive Pieter Elbers.
“We have made progress as the number of grounded aircraft and the related costs have begun to decline.”
While the precise count of grounded aircraft remains unclear, estimates suggest that it exceeds 60 planes.
Declining AOGs
During a post-earnings analyst call, IndiGo’s Chief Financial Officer, Gaurav Negi, noted that the airline’s AOGs have been decreasing and are expected to fall to the mid-40s by April 2025.
He mentioned that this would subsequently lower expenses related to AOG mitigation strategies. In the second quarter, IndiGo’s operating lease liability was recorded at ₹47,779.4 crore.
Negi added that as the AOG situation improves, the airline will begin returning the damp leased aircraft.
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