The Union government on Friday gave Indian carrier IndiGo a “one-time last and final” three-month extension to end its leasing agreement with Turkish Airlines, reported The Indian Express.

IndiGo operates two Boeing 777-300ER aircraft on a damp lease agreement from Turkish Airlines. It uses the aircraft for direct flights from Delhi and Mumbai to Istanbul.

Under the agreement, Turkish Airlines supplies the aircraft, crew, maintenance and insurance, while IndiGo handles ticket sales and marketing of the service.

The Indian carrier had requested a six-month extension of the agreement, which the Union government rejected.

This came against the backdrop of Ankara’s support for Islamabad during heightened tensions between India and Pakistan, and amid reports that Pakistan used Turkish-made drones during the conflict.

IndiGo was given the three-month extension, which came just a day before the agreement was set to expire, “based on the undertaking from the airline that they will terminate the lease with Turkish Airlines within this extension period, and shall not seek any further extension for these operations”, a senior official of the Directorate General of Civil Aviation was quoted as saying by The Indian Express.

The two airlines had signed the damp lease agreement in 2023. IndiGo also has a codeshare agreement with Turkish Airlines since 2018.

A codeshare agreement allows airlines to sell seats on each other's flights. This allows airlines to offer flights to destinations they do not directly operate, expanding their network and customer base without increasing their fleet.

Amid worsening India-Turkey relations, IndiGo had stated that its agreements with Turkish Airlines are fully aligned with Indian laws and regulations, The Indian Express reported.

“If there are any changes in the framework, we will naturally adjust our operations to stay aligned,” IndiGo Chief Executive Officer Pieter Elbers said earlier in the day, according to Business Standard.

On May 15, the Union government also cancelled the security clearance for Turkish ground-handling firm Çelebi in India.