New Delhi: A slowdown in the delivery of new aircraft has forced India’s biggest airline, IndiGo, to consider the wet-lease option to raise its passenger capacity for the upcoming winter schedule.
The airline is in talks with Lithuanian airline SmallPlanet and troubled European airlines Air Berlin and Alitalia to wet lease at least seven A320 planes, sources close to the development said. While IndiGo has been dry leasing older planes since 2015, this will be the first time the airline will resort to wet lease.
Wet lease, an arrangement under which the lessor airline provides aircraft along with crew, maintenance, etc to the lessee, is costlier than dry lease and may lead to a spike in operational cost for IndiGo. But if the airline does not deploy enough capacity, it fears losing market share, besides lucrative slots at airports.
The arrangement will be only for the winter season, which will end in March 2018.
The airline is in talks with Lithuanian airline SmallPlanet and troubled European airlines Air Berlin and Alitalia to wet lease at least seven A320 planes, sources close to the development said. While IndiGo has been dry leasing older planes since 2015, this will be the first time the airline will resort to wet lease.
Wet lease, an arrangement under which the lessor airline provides aircraft along with crew, maintenance, etc to the lessee, is costlier than dry lease and may lead to a spike in operational cost for IndiGo. But if the airline does not deploy enough capacity, it fears losing market share, besides lucrative slots at airports.
The arrangement will be only for the winter season, which will end in March 2018.