The federal government is unlikely to increase InterGlobe Aviation Ltd.’s leasing settlement with Turkish Airways, in a transfer that indicators additional pressure in bilateral ties, based on folks acquainted with the matter. The present pact, which allows IndiGo to function wide-body plane on the Delhi-Istanbul route, expires on Might 31.
The federal government assessment is below means and the deal is “unlikely to be renewed” given the broader diplomatic context, the folks mentioned.
The event got here as India has been downgrading engagement with Turkey following its growing defence cooperation with Pakistan.
Final week, the Ministry of Residence Affairs revoked the safety clearance of Turkish floor dealing with agency Celebi. Individually, sources say Air India flagged issues over the IndiGo-Turkish Airways leasing association, prompting the Centre to look at potential safety dangers.
IndiGo at the moment operates over 500-seater Airbus A330s on lease from Turkish Airways for its Istanbul flights. The partnership additionally features a codeshare deal that permits IndiGo to promote connections to over 40 locations in Europe and North America through Istanbul.
On Thursday, IndiGo defended the collaboration, calling it “strategic” and important for providing Indian flyers long-haul worldwide entry.
The airline didn’t reply to Newsstate24 Revenue’s requests for touch upon the federal government’s newest assessment.
. Learn extra on Enterprise by Newsstate24 Revenue.