IndiGo CEO defends India's bilateral aviation policy amid criticism from Emirates President
Sparring with Emirates President Tim Clark, who once again criticised India's restrictive policy for foreign carriers, IndiGo CEO Pieter Elbers on Monday said, 'if one side makes more and more noise, it doesn't mean that you are more and more right.'
'It's called the bilateral agreement, right? That means two sides have to agree on something,' Mr. Elbers said during a press conference at the Annual General Meeting of the International Air Transport Association (IATA) in New Delhi, when asked about India's protectionist policies towards airlines.
On Sunday (June 1, 2025), Mr Clark had stated that India's ambitions for developing hub airports to attract connecting passengers were not 'compatible' with its restrictive policies for foreign airlines. The UAE has sought a revision of the air service agreement and a doubling of seat capacity between Dubai and India from 65,000 seats per week to 1,40,000 seats. However, the Indian government maintains that it needs to prevent leakage of passengers ferried by foreign carriers through their hub airports such as Dubai, Doha, and Singapore, at the expense of Indian carriers flying long-haul routes such as Air India.
IndiGo's CEO described the Indian government's approach as 'completely fair and balanced.' Mr Elbers's remarks, which are usually measured, come at a time when IndiGo is entering the European market, with Manchester and Amsterdam as its maiden destinations from early July. The airline has also doubled its order of widebody Airbus A350 aircraft to 60, enabling it to offer non-stop flights across the world.
Mr Elbers explained that historically there had been an imbalance where several countries with flying rights into India deployed capacity through their airlines for Indian destinations, while Indian carriers lagged behind.
Sharing the stage with Mr Elbers was IATA Director General Willie Walsh, who expressed an opposing view. He said that while flying rights were an issue worldwide, India was now looking at a 'fascinating opportunity' as it pivots from domestic to international connectivity. This transition would require greater access to international markets, which in turn would require reciprocity.
'As we see the expansion of the carriers in India accessing new markets, you will have to see a corresponding change to the approach for access,' Mr Walsh maintained.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
12 minutes ago
- Economic Times
How is India benefiting from supply chain diversification away from China? Morgan Stanley's Chetan Ahya explains
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , Chief Asia Economist,says India is gaining advantage due to tariff differences with China. American companies are considering increased imports from India. Government policies are boosting manufacturing and exports. Electronics manufacturing is expanding beyond mobile phones. Infrastructure development will further strengthen India's manufacturing exports. Optimism in Indian equity markets aligns with positive economic fundamentals. The organization maintains a bullish outlook on think that the government capex has been the key anchor of the capex cycle and to the extent to which India has been embarking on this focus on manufacturing capex, the government's focus on infrastructure would be an important anchor to that private capex eventually improving as now, it is still the government capex and we had seen a bump down or a small slowdown period for government capex post general elections last year. But we have seen that in the last three-four months, there has been a meaningful pick up in government capex. In March, we saw that both central and state government capex growing at a very high pace and that has now taken the 12-month trailing centre plus state combined capital expenditure to close to the peaks that we had seen right before the general have seen this strength in government capex coming back again. As far as private capex is concerned, we were expecting that would have picked up a lot more by this time, but to the extent to which we have seen this trade tensions emerge from early this year that is going to affect the capex outlook not only in the region, but also in India, despite the fact that India has lower exposure to global goods reality is that it still has a meaningful exposure of 12% of GDP being its goods exports to GDP. We are expecting private capex to be going through a bit of an adjustment period in the environment of global trade tensions and then, over the next calendar year, that is, in 2026, we should see a pick up in private capex because by that time, the damage out of this global trade tensions would have been behind is benefiting on account of it. Right now, during a period where tariffs on China, even after having come down, are still at a very high run rate of 30% and from the 2018 period, you also have about 11% weighted average tariff on imports from China that the US has imposed. Cumulatively, we still have a 41% tariff rate for import from China for the US and that does give some sectors an advantage over China in terms of pricing and even sort of thinking about a bit more from a medium-term corporate sector in America is beginning to think about importing more from India. India is probably benefiting on account of that. Then, from a medium-term perspective, we have always argued that look, it is not just about taking away market share from China, but just getting rightful market share for India in the global goods exports and for that India's policies that were important and the government has been taking the right policies to boost that manufacturing sector have seen electronics manufacturing getting a leg up. We are going to see that expand into more and more products within the electronic segment apart from mobile phones and laptops. And at the same time, we think that from a medium-term perspective, this whole push towards infrastructure will really strengthen India's manufacturing exports. It is really a lot of the domestic policies that will be important from the long term apart from the short-term benefit that it may get on account of differential tariff rates between India and our regional and India strategists have been very constructive on India. So, we are aligned up as a house on being bullish on India.


Economic Times
13 minutes ago
- Economic Times
Tariff jitters temporary, long-term upside intact for India Inc.: Deepak Shenoy
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "Overall fund flows seem to be more concentrated towards domestic. There is also a lot more action in terms of results and some of these tariff news and all that stuff which is kind of still creating a lot of uncertainty," says Deepak Shenoy , Founder, Capital Mind We saw about 25,000 crores enter the markets as fresh entries into mutual funds in April and given that May was like a 9% plus month for smallcaps and smallcap funds have been the second largest recipient of funds in April, that will kind of bolster more retail investment into domestic funds even that, overall fund flows seem to be more concentrated towards domestic. There is also a lot more action in terms of results and some of these tariff news and all that stuff which is kind of still creating a lot of have come to the realisation that there is a little bit of back and forth and anybody says something about tariffs that is likely to be changed very quickly in whichever direction and mostly in the direction of removing those tariffs in a short period of I feel that in the end we will come down to 10% tariffs by the US to everybody and by and large some countries may receive a little more but I do not think this is going to be a major impact longer we realise this, it is less of an impact overall. The themes that seem to still be working is manufacturing, is financialization , and is maybe defence as themes that hurt perhaps are commodities because a large amount is based on world-wide demand as well, so that theme seems to be constant. I do not think today is any special day in that sense, but we have to be cognisant that as these tariffs come off and as eventually the wars in the world come to some kind of conclusion, the upside for India is definitely strong and I am biased, I am a fund manager, so we have to be positive but some of the positives are going to get more visible in the next six I will be honest. We run a company in this industry and therefore very-very heavily biased. But I still think this is the tip of the iceberg in terms of how much this industry can scale. I would not talk about who the winners will be and who the losers will be, but India is terribly under-financialized. Less than 18% of our GDP is in mutual funds whereas in America that number is more than 100%. So, to a certain extent there is a lot of room for the Indian organised financial industry to move. We are moving away from the real estate, gold, and chit funds kind of products to save into real financial products or financial products of a more regulated sort which has a lot more potential. You are seeing this happening. 25,000 crores a month net new inflows, most of that coming through SIPs This has not slowed down meaningfully even through the fact that the markets have corrected. We have seen more regulatory action that has fortified, so whether it is an RTA, whether it is an AMC, whether it is an exchange, or whether it is a depository all of them are getting more and more prominent in the overall structural framework of now it is becoming more and more easy to transact in them, to deal with them if a person dies transferring a financial product is way easier than trying to transfer say real estate or anything like a lot of these things add up over time and fortify people's minds into saying okay we will do this. You cannot sell half a house, but you could sell half a mutual therefore, people are actually getting more and more into financial products as such and the financial products themselves are investing in different things. You can buy gold through a mutual fund. You can buy stocks through a mutual fund. You can buy bonds and so on. So that way the industry itself has kind of scaled we are also seeing wealth management players, people who manage the money of relatively richer people even those stocks are kind of increasing in value and they are increasing in terms of growth as well, in terms of real profits. So, from that perspective we are yes, maybe we are overpaying for these stocks today, but a structural approach to buy them over a period of time is perhaps necessary for any growth oriented portfolio.


Hindustan Times
15 minutes ago
- Hindustan Times
NATO wrestles over how to handle Ukraine at Trump summit
How to have Ukraine's Volodymyr Zelensky at NATO's Hague summit and avoid a bust-up with US President Donald Trump? What to say on Kyiv's desire to join their alliance? With NATO appearing on track to seal a deal on ramping up defence spending, another thorny issue now threatens to overshadow the gathering in three weeks: what to do about Ukraine? When they met in Washington a year ago, NATO's leaders feted Zelensky, pledged more military hardware and vowed Kyiv was on an "irreversible path" for membership in their alliance. That was before Trump's return to the White House ripped up Washington's support for Ukraine and upended the West's approach to Russia's three-year war. Since he regained the US presidency, Trump had a dramatic Oval Office falling out with Zelensky, opened the door to warmer ties with Moscow and forced both sides to the negotiating table. Kyiv's European backers have pushed to invite Zelensky to the June 24-25 meeting in the Netherlands to show NATO still stands strongly behind Ukraine. But the United States has been reluctant even to have Zelensky there and the reality is Trump has already blown a huge hole in Western backing for Kyiv. The Ukrainian leader said this week he'd received an invite from NATO chief Mark Rutte for Kyiv to be there in some form. "We can confirm that Ukraine will be with us in The Hague," a NATO official told AFP. Diplomats, speaking on condition of anonymity, said Zelensky could come for a dinner hosted by the Dutch king for NATO leaders, but that there likely wouldn't be formal talks between Ukraine and the alliance. "It will be a PR disaster if he's not there," a European diplomat said, speaking as others on condition of anonymity. How Zelensky may be received in The Hague looks set to depend heavily on the progress, if any, of fraught talks with Russia over the next few weeks. So far two rounds of meetings between the warring sides in Istanbul have produced few results. Trump appears to be getting increasingly annoyed with Russian President Vladimir Putin for dragging his feet on a ceasefire. But the US leader still hasn't responded with sanctions against Moscow and has equally expressed his displeasure with Zelensky's outspokenness. Rutte has insisted that Ukraine remains a "priority" issue at the summit. Diplomats, however, say that the overwhelming focus is on striking an agreement on spending that satisfies Trump's demands to spend five percent of GDP on defence and keeps the United States on board at NATO. Multiple officials say the alliance looks set to reach a compromise put forward by Rutte of 3.5 percent of GDP on core defence, and 1.5 percent on broader spending such as infrastructure. "Defence spending is the most important part and no one wants to jeopardise that," a second diplomat said. One area where there doesn't seem much uncertainty is that NATO will steer clear of its previous strong statements that Ukraine is on course to join the alliance. Trump has repeatedly poured cold water on Ukraine's ambition to become a member and even blamed Kyiv's bid to join for provoking Russia's war. NATO is aiming to keep a final declaration from the summit short and avoid mention of Ukraine's possible membership to not open up any fissures. "There will be nothing on that," said a third diplomat, at NATO. "My expectation is we will be absolutely silent." There also looks set to be no joint statement on military support from the alliance's 32 countries as Trump has hit the brakes on assistance. In a sign of how far the US has moved, officials said US defence secretary Pete Hegseth won't attend a meeting of NATO backers in Brussels on Wednesday. He will however jet in for a meeting of NATO defence ministers on Thursday. del/ec/giv