IndiGo explores Boeing 737 Max lease from Qatar Airways
AVIATION & AIRPORTS

IndiGo explores Boeing 737 Max lease from Qatar Airways

IndiGo, India's largest airline, is strategising to address a shortage caused by the grounding of aircraft due to Pratt & Whitney (P&W) engine issues. To alleviate this shortfall, the airline is contemplating the short-term damp lease of up to five Boeing 737 Max planes. These aircraft, less than four years old, are slated to be leased from Qatar Airways for a six-month period during the upcoming busy summer travel season.

In a damp lease arrangement, the lessor provides the aircraft, cockpit crew, and maintenance to the lessee, making it a relatively more expensive option than a standard lease. Maintenance responsibilities for the Boeing 737 Max aircraft will be overseen by Qatar Airways, while IndiGo will manage the cabin crew. This marks IndiGo's inaugural venture into operating Boeing 737 planes, having previously operated Airbus A320 aircraft.

Sources indicate that the leased aircraft will be exclusively deployed on the India-Qatar route, with Qatar Airways handling the business class sales. IndiGo has a similar arrangement with Turkish Airlines, operating two Boeing 777 aircraft on the India-Istanbul route.

This move comes as IndiGo faces challenges in securing enough used aircraft for short-term leasing, with the leasing market experiencing a shortage of available planes. The airline has had to ground approximately 75 Airbus A320 Neo aircraft due to the recall of P&W engines by US-based aerospace major RTX.

IndiGo acknowledges that capacity growth in the current January-March period will be 12% lower than the average 15-19% growth seen in previous quarters. The scarcity of used planes in the leasing market is attributed to global airlines retaining older aircraft due to capacity constraints and ongoing engine issues.

The recent restrictions on the expansion of Boeing 737 Max production, following the Alaska Air incident, are expected to further tighten the supply situation. Analysts from Ishka, specialising in aircraft valuation, reported a limited availability of Airbus A320 Ceo Aircraft for rent, with a 22% increase in the market value of a 5-year-old A320 Ceo compared to January 2022.

IndiGo, previously accustomed to returning aircraft after six years, now faces the necessity of retaining them for longer periods to address the existing shortfall. While IndiGo has effectively managed the challenges arising from grounded aircraft due to global P&W engine issues, the increased demand for alternative aircraft is expected to come at a higher cost, according to Sidhharth Nakhende, head of airline analysis at Ishka.

IndiGo, India's largest airline, is strategising to address a shortage caused by the grounding of aircraft due to Pratt & Whitney (P&W) engine issues. To alleviate this shortfall, the airline is contemplating the short-term damp lease of up to five Boeing 737 Max planes. These aircraft, less than four years old, are slated to be leased from Qatar Airways for a six-month period during the upcoming busy summer travel season. In a damp lease arrangement, the lessor provides the aircraft, cockpit crew, and maintenance to the lessee, making it a relatively more expensive option than a standard lease. Maintenance responsibilities for the Boeing 737 Max aircraft will be overseen by Qatar Airways, while IndiGo will manage the cabin crew. This marks IndiGo's inaugural venture into operating Boeing 737 planes, having previously operated Airbus A320 aircraft. Sources indicate that the leased aircraft will be exclusively deployed on the India-Qatar route, with Qatar Airways handling the business class sales. IndiGo has a similar arrangement with Turkish Airlines, operating two Boeing 777 aircraft on the India-Istanbul route. This move comes as IndiGo faces challenges in securing enough used aircraft for short-term leasing, with the leasing market experiencing a shortage of available planes. The airline has had to ground approximately 75 Airbus A320 Neo aircraft due to the recall of P&W engines by US-based aerospace major RTX. IndiGo acknowledges that capacity growth in the current January-March period will be 12% lower than the average 15-19% growth seen in previous quarters. The scarcity of used planes in the leasing market is attributed to global airlines retaining older aircraft due to capacity constraints and ongoing engine issues. The recent restrictions on the expansion of Boeing 737 Max production, following the Alaska Air incident, are expected to further tighten the supply situation. Analysts from Ishka, specialising in aircraft valuation, reported a limited availability of Airbus A320 Ceo Aircraft for rent, with a 22% increase in the market value of a 5-year-old A320 Ceo compared to January 2022. IndiGo, previously accustomed to returning aircraft after six years, now faces the necessity of retaining them for longer periods to address the existing shortfall. While IndiGo has effectively managed the challenges arising from grounded aircraft due to global P&W engine issues, the increased demand for alternative aircraft is expected to come at a higher cost, according to Sidhharth Nakhende, head of airline analysis at Ishka.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code