IndiGo may add wide-body aircraft before 2027 when brand new Airbus A350 aircraft join the fleet to address “growing demand” for travel and a shortage of new aircraft globally, it said on Wednesday.
Industry sources said the airline plans to lease (or charter) six Boeing 787s from Norwegian airline Norse Atlantic and deploy them for its network from February.
Although the airline declined to confirm a possible wet lease deal with Norse Atlantic, it said, “IndiGo is exploring interim solutions for the earlier introduction of long-haul aircraft in its fleet.”
The airline said it is doing this to “expand our geographic reach and meet the growing demand for international travel from India” while also “taking into account global supply chain challenges”.
Routes and network opportunities related to these solutions are currently being explored, IndiGo said.
IndiGo currently has 2 Boeing 777s from Turkish Airlines that are used to offer daily flights from Mumbai and Delhi to Istanbul. The fleet of more than 400 aircraft includes the narrowbody A320 family of aircraft. It also has 69 long-range A321 XLRs, but their deliveries have been delayed and are expected to join the Indigo fleet next year. Earlier this year it placed an order for 30 widebody A350s, which are expected to join the fleet only in 2027.
To help carriers like IndiGo, which also has 70-80 aircraft grounded due to issues with Pratt and Whitney engines, as well as SpiceJet which also leases aircraft to avoid maintenance-related aircraft groundings, the DGCA on Tuesday issued a revised notification. Criteria allowing airlines to take aircraft on wet-lease for up to 18 months instead of 6 months previously allowed. As per the revised civil aviation requirements, airlines can wait lease for 12 months, extendable for another six months. Earlier they were allowed to soak for three months, which could be extended by another three months.
Airlines could also use these aircraft only on existing routes, but now they can also operate them on new routes to give them more flexibility.
“Given the current shortage of aircraft in the lease market and delays in new production, the provision to extend six months beyond the initial 12 months is particularly beneficial for Indian operators. Without such regulatory flexibility, airlines may face significant disruptions during peak seasons, potentially damaging their business,” explains Alok Anand, President and CEO of Ecumen Aviation.
The global shortage of aircraft is such that even supply from traditional lessors where aircraft are only leased, known as dry leases, is now strained allowing wetleases to gain currency.
“This is driven by both supply constraints and lessors’ reluctance to increase their exposure to the Indian market, where many have leased two-digit aircraft to large operators. On the other hand, wet leases are difficult for aircraft, crew, maintenance and insurance (ACMI) operators and multiple aircraft operator permits. are obtained from organizations whose business models are suited to short-term wet leases. These operators benefit from leasing their idle aircraft in the off-season, which It helps them generate revenue by hiring their employees, says Mr. Anand.
published – Dec 25, 2024 09:20 pm IST