Representative file image. , photo credit: AFP
Emirates India chief Mohammed Sarhan said India should allow airlines to fly more seats to Dubai, failing which airfares will remain high on some of the world’s busiest routes.
“We have been in the present bi [air service agreement] For about 10 years,” Mr. Sirhan, vice president for India and Nepal at Emirates, said in an interview. “We have reached the upper limit and I believe Indian carriers have also reached the upper limit. It is time to open up bilateral ties and give both sides a chance to move forward.
Under the Bilateral Air Services Agreement (ASA) signed between the UAE and India in January 2014, airlines from both countries are allowed to operate a total of 66,000 seats per week between Dubai and 15 Indian cities. Last year, the UAE requested the Ministry of Civil Aviation to increase the number of seats for Dubai to 50,000.
Flights from Delhi and Mumbai to Dubai have seen skyrocketing airfares post COVID-19, which is also partly due to restrictions in flight capacity between the two countries. “If you keep supply under pressure and demand is rising, prices will go up,” said an Emirates official.
Fares for flights from New Delhi, Bangalore and Cochin to Dubai have seen an average increase of 45-50% compared to pre-Covid fares, data from travel booking portal ixigo shows.
A senior government official said talks on revising the ASA were in a “logjam” and acknowledged that “employees flying the route have been hit the most.” But “a political push is needed” to resolve the issue, said the official on condition of anonymity.
While Indian airlines favor restrictions to protect themselves from competition from heavy-hitting airlines from Gulf countries, Mr. Sirhan insisted, “There is food for everyone. Demand is strong and growing.”
“Gulf carriers like Emirates are looking to add capacity so they can fly passengers from Dubai to North America and Europe,” said Amey Joshi, aviation analyst and founder of the aviation blog, NetworkThoughts. “Markets like India act as a feeder network which helps them serve larger destinations with long-haul flights, and this is their prime business model. Therefore, it is up to the Government of India to either protect the interests of domestic carriers, or allow free competition, where the customer is king and stiff competition results in lower airfares.
While the UAE and India have been exploring ways to enhance trade ties such as through the recent establishment of the UAE chapter of the Indian Business Council or the Comprehensive Partnership Agreement signed last year, aviation connectivity will also be an enabler of these improved ties. . Upgrading is needed, Mr. Sirhan underlined.