IndiGo, SpiceJet to hire  aircraft to boost capacity in winter

A slowdown in the delivery of new aircraft is forcing Indian airlines to wet lease planes to increase capacity for the upcoming winter schedule.
   India’s largest airline, IndiGo, has finalised a deal to wet lease up to three Boeing 777 aircraft in order to deploy higher capacity on international routes. The carrier that had so far limited itself to operate single-class narrow-body planes will for the first time offer business class along with economy on these widebody aircraft.
The airline is also in talks for wet leasing narrow-body Airbus 321 aircraft, but a final decision has yet to be made.
   Rival SpiceJet has finalised a deal to wet lease up to seven Boeing 737 Max aircraft from Turkish airlineCorendon.
   SpiceJet has been unable to expand capacity, as it could not get any new aircraft from Boeing after India cleared the 737 Max to operate.Wet lease, an arrangement under which the lessor provides an aircraft along with crew and maintenance, is costlier than dry lease and may lead to a spike in operational cost. But the airlines fear that if they don’t deploy enough capacity, they may lose market share, besides lucrative slots at airports.
The regulator, Directorate General of Civil Aviation, permits wet lease up to a maximum of six months in emergency situations, like grounding of aircraft.
   People in the know said IndiGo would be leasing the aircraft from Turkish Airlines — Turkey’s national flag carrier with which it has a code share partnership. It will primarily deploy the aircraft on the Delhi-Istanbul and Mumbai-Istanbul routes, but also use them for charter operations.
IndiGo has been forced to ground around 30 aircraft as supply of spare engines by US-based Pratt & Whitney has fallen behind schedule by at least two months. The airline, which was returning aircraft older than six years, has now been forced to hold onto them for a longer period due to the shortfall.
    “The Airbus A321 Neo which would have been used to augment capacity on international routes is facing unprecedented delays limiting the airline’s ability to increase international flights. The 777 aircraft which will be in a twin-class configuration with around 350 seats will substitute this,” said a person aware of the plan.
An IndiGo spokesperson confirmed that the airline has decided to take aircraft on wet lease to cover the shortfall caused by supply chain disruptions in international operations. “International air travel is going through a strong period of recovery, and demand continues to rise in the upcoming festive and winter season. We have received an in-principle approval from the regulators for wet leasing aircraft and induction of these remains subject to further requisite regulatory approvals,” she said.
A SpiceJet spokesperson didn’t comment on the matter, but an executive said the airline would be bringing in the aircraft for a temporary period of up to three months till delivery of its 737 Max begins. SpiceJet plans to add seven new Boeing 737 Max starting next year.
-B