Restricting air access is akin to shooting yourself in the foot: Emirates

Business Standard

2 days ago

Restricting air access to foreign carriers by not granting them more bilateral rights is akin to shooting yourself in the foot, as air transport is a wealth multiplier for India's economy, Emirates President Tim Clark said on Sunday.
The remark comes amid a long-standing tussle over bilateral flying rights between India and the United Arab Emirates (UAE). Under the 2014 bilateral air service agreement, carriers from each country can operate up to 66,504 seats per week in each direction. Emirates, which already runs 334 weekly flights between Dubai and India, has maxed out its share.
The UAE has repeatedly pushed for more capacity, but the Indian side — due to a strong push from Air India — has resisted, citing concerns that greater foreign access would undercut its own ambitions in the long-haul market.
Clark on Sunday said the Indian diaspora forms a large part of Dubai's population, which has grown rapidly over the past decade. He noted that the scale of travel by Indians to and from Dubai underscores the missed opportunity in not expanding seat entitlements for Emirates.
He added that the Indian government's policy of limiting foreign carrier capacity may stem from its own strategic reasons but hoped it would recognise the critical role of aviation in driving economic growth.
'After all, it's been a catalyst for so many economies in the past 20-30 years that have grown well. And, if you look at the air access that comes as part of that operating model, it's quite clear that not doing that will only have you shoot yourself in the foot in the end. But, it's up to the Indian government to decide what they want to do on that,' he observed.
His remarks were made during a press conference held on the sidelines of the annual general meeting of the International Air Transport Association.
The airline has been expressing frustration for several years over India's continued reluctance to expand flying rights. In March 2023, Clark described the decision as 'very vexing', adding that it was a 'pity' the carrier could not operate additional flights despite strong demand.
Indian carriers remain divided on the issue of granting more bilateral rights to West Asian countries. In June 2024, the chief executive officers (CEOs) of Air India and SpiceJet opposed any expansion, arguing that the government should prioritise developing Indian airports into global hubs. On the other hand, the CEOs of Akasa Air and IndiGo called for a holistic evaluation before taking a final decision.
Air India CEO and Managing Director Campbell Wilson went so far as to warn in June 2024 that granting more rights would be akin to pulling the rug out from under Indian carriers. 'Indian carriers have recently ordered more than 1,000 aircraft. We have an appetite for more. We are committing to that on the basis that there would be an economic return to that investment, which, if you add it all, is well over $100 billion… If the rug is pulled out from under us (by granting more bilateral rights), and if we can't fly those aircraft, we will not take them,' he said.
Gulf carriers such as Emirates and Qatar Airways have been urging India to expand bilateral entitlements to allow for more flights. However, Indian airlines like Air India argue that such a move could hamper their long-haul and ultra-long-haul expansion plans, particularly to destinations in North America and Europe.