InterGlobe Aviation shares fell over 3% on Wednesday after reports revealed that Tigerair is to take back the 12 jets subleased to Indigo, owned by the Aviation company. Meanwhile, Aditya Ghosh, President and Director of the InterGlobe Aviation company in an interview with CNBC TV18 claimed that the reports related to the taking back of leased planes were completely false. He said that the Tigerair cannot take back any aircraft before the contracted term of the lease comes to an end.
The Tigerair is reported to be growing its capacity via the returning aircraft subleased to Indigo in 2014. The Tigerair is a budget airline and operates to regional destinations in the Southeast Asia, China, and India from the Singapore Changi Airport. The Singapore-based Tiger Airways Holdings Ltd. had subleased these aircraft after airlines were left surplus to requirements following the reduction of the group’s operations in Indonesia. The 12 A320s had been subleased to Indigo for up to 4 years, out of which 11 had to be returned by 2018.
The InterGlobe aviation has had a strong passenger growth in recent times. Indigo meanwhile has dominated the airline market, sweeping close to 40% of the domestic market. The country’s domestic air traffic has grown by 23% between January to July this year, carrying 560.9 lakh passengers in comparison with last year.