BUSINESS
India’s largest airline, IndiGo, is preparing for a significant shift in its fleet strategy. The carrier is set to lease six Boeing 737 MAX aircraft from its codeshare partner, Qatar Airways, marking its first foray into operating narrowbody Boeing jets. This strategic move comes as IndiGo faces a challenging period with a substantial number of aircraft grounded due to engine and supply chain issues. IndiGo , traditionally known for its Airbus A320 family aircraft and ATR turboprops for regional flights, is expanding its horizons. The addition of these six Boeing 737 MAX planes on wet or damp lease represents a new chapter in the airline’s fleet composition. Until now, IndiGo’s narrowbody fleet exclusively comprised Airbus models, but this new arrangement with Qatar Airways introduces Boeing’s 737 MAX into the mix. Currently, IndiGo operates two widebody Boeing 777 jets, also on damp lease, from Turkish Airlines for its India -Istanbul routes. The upcoming deal with Qatar Airways will mirror this arrangement, providing IndiGo with similar operational flexibility. Qatar Airways, which has just nine Boeing 737 MAX aircraft in its fleet, will see two-thirds of its 737 MAX planes leased to IndiGo, highlighting the scale of this partnership. With over 70 IndiGo aircraft currently grounded, the airline is taking proactive measures to manage its fleet and maintain operational efficiency. As of June 30, IndiGo’s total fleet stood at 382 aircraft, primarily Airbus A320s. To address the grounding issues, IndiGo has been extending leases on older planes and taking additional aircraft on lease. The new lease agreement with Qatar Airways is a strategic move to alleviate pressure on IndiGo’s grounded fleet, allowing the airline to redeploy six of its own aircraft to other routes. Gaurav Negi, IndiGo’s Chief Financial Officer, detailed the plan during a recent investor call. “Subject to regulatory approvals, we will induct six more aircraft from Qatar Airways for the Doha route in the coming quarters,” he announced, though the exact timeline for the induction remains unspecified. The lease arrangement will see Qatar Airways handle the aircraft’s maintenance, crew training, and insurance, similar to its current agreement with Turkish Airlines. This deal is not only advantageous for IndiGo but also benefits Qatar Airways. The bilateral air services agreement between India and Qatar permits each country’s airlines to operate 25,000 seats per week. With Qatar Airways’ seat quota fully utilized, leasing these planes to IndiGo allows the Doha-based airline to earn additional revenue from its India operations while utilizing IndiGo’s seat quota. In summary, IndiGo’s upcoming lease of Boeing 737 MAX aircraft from Qatar Airways represents a strategic maneuver to bolster its operations amid fleet challenges. This partnership not only diversifies IndiGo’s fleet but also offers mutual benefits, strengthening ties between the airlines and enhancing their operational capabilities. None
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