India remains one of the fastest-growing aviation markets in the world, with a burgeoning middle class increasingly taking to the skies in record numbers. As a result, the country is on the radar of global airlines, especially full-service behemoths like Emirates, which have benefited from growth in India in the past. Now they are finding themselves constrained by India’s long-standing bilateral air service agreements. The calls to open up access have gotten louder—especially from the UAE—but India is staying firm, citing the need to allow local carriers space to grow.

Emirates: “We are being constrained artificially”

Sir Tim Clark, President of Emirates Airline, has made no secret of his frustration with India’s restrictive approach to international flying rights for foreign carriers. The airline, which once saw India as a cornerstone of its network, is feeling increasingly hamstrung due to the lack of additional seat entitlements to and from India.

Sir Tim Clark, in a media roundtable held before the onset of the IATA AGM in Delhi, said,

Weʼve been stuck with 65,000 seats in each. direction (Dubai-India and vice-versa) for just over 11 years now (during which period the demand for travel has grown exponentially). For every seat we sell, there are probably 10 takers. So I donʼt see getting impacted by IndiGo and Air India expansion plans. In fact, there probably be a major relief valve for the pent up demand that has been in India for decades. Frankly, good luck to AI and IndiGo with getting airplanes at the pace they need

Emirates currently operates nearly 170 weekly flights between India and Dubai, fully utilising its existing entitlements under the bilateral agreement. Despite booming demand—especially from Tier 2 cities—those numbers have remained unchanged for years. Sir Tim denied that the airline could operate flights from Navi Mumbai and Jewar because of the constraints on the rights that are over.

He further argued that India’s vision of becoming a global hub for aviation was inconsistent with its protectionist stance. “You can’t have it both ways,” Clark said.

India’s View: “A fair and balanced policy”

On the other side of the aisle is India’s largest airline, IndiGo, which has become the country’s biggest player on international routes, alongside its domestic dominance. Pieter Elbers, CEO of IndiGo and formerly the chief of KLM, takes a more measured view on the state of India’s aviation policy. Without naming Emirates, he said,

If one side makes more and more noise, it does not mean you are more and more right.

“It’s a fair and balanced policy,” Elbers said in a press conference at the IATA AGM.

India is not closed. It is gradually opening up in a sustainable and measured way. There is a strong belief that India has to be more than a transit point.

Pieter pointed out that it is a bilateral agreement, which means both sides have to agree on what benefits both sides.

IndiGo, along with Air India, has been steadily increasing its international presence. With new aircraft deliveries and codeshare agreements, these airlines are beginning to challenge the dominance of the Gulf carriers on India-Europe and India-US corridors.

Bottomline

There’s no denying that India is an incredibly lucrative aviation market, and everyone wants a bigger piece of the pie. Emirates’ call for more flying rights reflects the massive demand that remains unmet. But from the Indian government’s perspective, the strategy is clear: build up local carriers before opening the floodgates.

As it stands, there are no new bilateral entitlements on the horizon for UAE-based carriers. And while Emirates waits—and waits some more—Indian carriers are being handed an opportunity to take to the global skies on their own terms.

What do you make of the to and fro between both sides for more access to the Indian markets?

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