India-Turkey Relations: IndiGo Stands Firm with Turkish Airlines Amidst Tensions with Turkey, ET Infra
Advt
Advt
By ,
ETInfra
In an indication that country's largest airline IndiGo will not undertake any spontaneous decision with regard to commercial relationship with Turkish Airlines , the carrier's chief executive officer (CEO) highlighted that the engagement with the foreign airline remains in conformity with the framework of the air service agreements between the two nations.Last week, the Bureau of Civil Aviation Security (BCAS) revoked the security clearance given to Turkish-origin airport ground handling services company Celebi, which operated at nine Indian airports, including Delhi and Mumbai International Airport. The development happened after Turkey supported and armed Pakistan against India during the four-day military skirmish from May 7 to 10. The airport partners of Celebi, including Delhi, Bengaluru and Mumbai International Airport, immediately severed ties with the ground handling firm after the action from BCAS.'All of the flights between India and Turkey are within the framework of the air service agreements between the two nations. The operations which are taking place are fully compliant and in line not only with the regulatory framework, but also by all the rules and regulations from the government,' said Pieter Elbers, CEO, IndiGo, in a conference call with analysts on Wednesday, responding to a query on the impact of the geopolitical situation.Europe is a key market for IndiGo and the airline has relied on its partnership with Turkish Airlines, including aircraft lease and codeshare pact, to expand its reach in the continent. A codeshare agreement is a commercial arrangement between two airlines to sell seats on each other's flights with the aim to offer its customers a large variety of destinations to choose. Such an agreement is margin accretive for IndiGo.'We still have lots and lots of Indian customers booked on these flights, mostly connecting over Istanbul and then flying to other parts of the world for their travel needs,' he added.Elbers however gave a cautious response to a query related to the leasing of Boeing 777 aircraft from Turkish Airlines. IndiGo had earlier opted to operate Boeing 777 aircraft to Istanbul on a damp lease from Turkish Airlines due to capacity shortage and supply chain issues in the aviation industry. The agreement helped IndiGo to gain experience on operating wide-bodied aircraft. The lease agreements for the Boeing 777 are coming up for renewal.'On the renewal, that's up for the government to decide on that,' said Elbers.Industry experts highlighted that the commercial engagement between IndiGo and Turkish Airlines, is more beneficial to the latter allowing it to capture Indian passengers for its network.'IndiGo should not play the role of a feeder airline to Turkish Airlines and deprive other carriers of passengers. It is acting as a feeder and taking away passengers from other airlines which provide direct and point-to-point services to long-haul destinations,' said Jitender Bhargava, aviation sector expert and former executive director of Air India.Istanbul provides several connecting flights on Turkish Airlines' network to the rest of Europe and North America.Amongst Indian airlines, Air India currently provides several direct flights to Europe and beyond to North America through its wide-bodied fleet of aircraft, which IndiGo lacks as of now.While IndiGo has placed an order for wide-bodied aircraft with Airbus, deliveries of which are scheduled to start from 2027, the damp lease of Turkish Airlines' Boeing 777 enabled the airline to have the much needed experience of operating wide-bodied aircraft.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
37 minutes ago
- Hindustan Times
New Zealand reiterates commitment to FTA with India, seeks closer defence ties
New Delhi: New Zealand is committed to finalising a free trade agreement (FTA) with India and even areas of concern such as the dairy industry can be turned into opportunities to ensure food security, New Zealand's deputy prime minister Winston Peters said on Friday. Peters, who is also the foreign minister, said New Zealand is keen to work more closely on defence and security issues with India, which he described as a 'geopolitical giant' and an 'indispensable security actor' in the region. External affairs minister S Jaishankar and Peters took stock of bilateral ties at a meeting in New Delhi late on Thursday. Jaishankar said in a social media post that both sides agreed to collaborate closely for a rules-based, peaceful and stable Indo-Pacific in a 'more volatile and uncertain world'. He also thanked New Zealand for its support on the Pahalgam terror attack. Peters' two-day visit to India is a follow-up to New Zealand Prime Minister Christopher Luxon's trip to New Delhi in March, when the two sides finalised an agreement to bolster defence cooperation and announced the launch of negotiations on an FTA. Participating in an interaction organised by Ananta Centre on Friday, Peters declined to set a timeline for concluding the FTA but said the 'conversation is going [ahead] with real meaning' despite 'certain areas of concern' such as the dairy industry. He argued that New Zealand's expertise in the dairy industry could open new opportunities, especially to bolster India's food security. 'I understand the the dairy industry in India. But here's the rub. You'll need 35% more food in the next 35 years and our country, rather than being an opponent, can be a serious help to drive up your productivity in the dairy industry,' he said. While offering New Zealand's help to boost the dairy industry's productivity in one Indian state, Peters said collaboration in this field can lead to 'better breeding, better outcomes, better production'. 'The more we look at India, we see opportunity everywhere if we can get this [FTA] across the line. We're not in it to enrich ourselves, we're in it to enrich both peoples,' he said, pointing to opportunities in agriculture. Two-way trade in goods and services between India and New Zealand has increased from $1.67 billion in 2020 to $1.75 billion in 2023. Earlier this month, India clinched a trade deal with the UK and it is currently engaged in trade talks with the European Union, Oman and the US. Also Read:New Zealand PM in India to attend 10th Raisina Dialogue as chief guest; focus on trade, security Peters noted that India is New Zealand's 12th largest trade partner and said his country is determined to change that. 'Our strengths, from food and beverage products to agriculture, forestry, horticulture, education and tourism are world-class. Our innovation in areas like outer space and renewable energy will find a welcome partner in India,' he said. He also focused on New Zealand's plans to work more closely on defence and security. 'During a time of great uncertainty, instability and disorder, we have taken steps to work more closely on matters of defence and security with India,' he said. The recent defence cooperation arrangement will facilitate closer links between militaries of the two countries, which are currently part of Combined Task Force 150. This multinational naval force, based in Bahrain, is charged with protecting some of the busiest shipping lanes in the Indian Ocean and Gulf of Oman and countering terrorism and piracy. Also Read: 'If the terrorists are in Pakistan, we will hit them where they are': Jaishankar 'India's involvement in this mission as the deputy commander of the task force underscores the growing closeness of our defence ties. The task force has already had some serious real impact, disrupting the trade of $600 million worth of illegal drugs so far,' Peters said. 'With tensions rising in the Indo-Pacific, it's crucial for New Zealand to work hand in hand with India and other like-minded partners to ensure the region remains free and open, with all nations respecting the rules that underpin peace and stability.' Reiterating New Zealand's commitment to South and Southeast Asia, Peters said: 'Ultimately, there's plenty in our relationship to benefit both New Zealand and India. As we work more closely together on defence and security, on sharing technology and human capital, and cooperating economically, we can say to you that India can rely upon New Zealand's word and the actions that support them.'
Deccan Herald
40 minutes ago
- Deccan Herald
IndiGo inks initial pact with BIAL to set up MRO facility
Under the agreement, BIAL will allocate about 31 acres to IndiGo for development of MRO infrastructure to support the airline's expanding fleet, it said in a statement.
India.com
42 minutes ago
- India.com
Gautam Adani hits jackpot as LIC invests Rs 50000000000 in this company of Adani, name is..
Masterstroke by Gautam Adani as Adani Group deploys India's first..., it is capable of... India's largest public sector insurer, LIC, has fully subscribed to a Rs 5,000-crore non-convertible debenture (NCD) issue of Adani Ports and Special Economic Zone, reported Economic Times. This move reflects Adani Ports' ongoing strategy to replace costly short-term loans with more affordable, long-term debt as part of its broader financial streamlining efforts. Issued on Thursday, the 15-year bond carries an annual interest rate of 7.75%. This makes it one of the longest-tenure domestic bonds raised by the Adani Group in recent months. According to a report by The Economic Times, LIC is the sole buyer of this bond. LIC already holds an 8.06% stake in Adani Ports. The funds raised from this bond will be used by the company for new investments, repaying existing debt, and other business needs. Gautam Adani's group is working to extend its loan repayment timelines and reduce borrowing costs. Due to strategic refinancing efforts, the group's average borrowing cost dropped to 7.92% in FY25, down from 9.02% in the previous year. As reported by The Economic Times, the head of fixed income at a domestic brokerage said, 'This deal shows LIC is taking large exposure to corporate bonds.' Backed by APSEZ's strong financials and a 'AAA/Stable' domestic credit rating, the issue locked in a competitive coupon rate of 7.75 per cent per cent, and was fully subscribed by LIC, the Adani Group company said in a are long-term financial instruments that companies issue to raise more money from investors. The debentures will be listed on the Adani Group company claimed that the NCD issue shows APSEZ's deep access to long-term capital from diversified sources at attractive pricing and significantly enhances APSEZ's debt maturity profile. It added that the transaction highlights APSEZ's access to domestic markets for its longest tenure issuance to date, and one of the longest in Indian capital markets proceeds will fund a proposed buyback of APSEZ's US Dollar bonds, pending board approval on May 31, 2025.
