India's IndiGo airline is planning to 'wet lease' planes to meet the growing demand for air travel. InterGlobe Aviation Ltd, the operator of IndiGo, has decided to opt for 'wet leasing' of the planes as the supply chain disruption might lead to delays in the delivery of new aircraft.
A 'wet lease' arrangement is one where the lessor maintains operational control of flights while providing aircraft and crew.
Reporting a second-quarter loss, Chief Executive Officer Pieter Elbers said IndiGo has been extending some of its existing leases and postponing the return of aircraft.
"Another element which is under discussion today, and we are still in the final stages of clarifying, is a possible wet lease operation," Elbers said, adding that the market was recovering very rapidly.
With increasing competition and Air India being revived under the ownership of Tatas, IndiGo is also looking at expanding its international operations.
The domestic carrier said it was optimistic about returning to operational profitability in the current quarter after its loss for the July-Sept period widened due to high fuel expenses and foreign exchange losses.
The airline expects a jump of about 25% in capacity measured by available seats per kilometre in the current quarter from a year earlier. It also maintained guidance for a 13%-17% capacity increase for the current fiscal year.
"In the coming years, we will build on our strong (domestic)foundations with more international aspirations," Elbers said.
