Emirates head says India's protectionism will harm its economy
AVIATION & AIRPORTS

Emirates head says India's protectionism will harm its economy

According to Emirates President Tim Clark, Indian travellers may have fewer options on international flights as New Delhi aims to expand the reach of its own carriers outside domestic airspace by restricting the number of seats available on foreign airlines in one of the largest outbound travel markets globally. The biggest international airline that flies into India is Emirates.

The National Democratic Alliance (NDA), which is expected to win a five-year term in office, has blocked foreign airlines' ability to expand, especially those from the Middle East. This is meant to incentivize these carriers to operate wide-body aircraft and offer direct flights to North America and Europe.. Clark stated on the sidelines of the Annual General Meeting of the International Air Transport Association (IATA) in Dubai that he understood the Indian government was considering the policy with the intention of safeguarding their own carriers, particularly by providing some leeway to Air India, which had been privatized. However, he expressed his belief that it would not be effective in the long term and would have adverse effects on their economy.

The last time flying rights to Dubai were increased was in 2014. The agreements that were made at the time permit Emirates to run 66,284 seats in India. But since then, traffic between India and Dubai has increased dramatically, and carriers on both sides have used up all of their allotted space. According to official sources, the UAE has requested that the Indian government supply an additional 50,000 seats per week, and the incoming administration will decide how to proceed with this request. According to travel data analytics company OAG, the Delhi-Dubai route is among the busiest in the world.

Air India, which is attempting to boost business on routes from India following the Tata group's purchase, has backed the government's protectionist decision. In 2023, the airline placed an order for 470 aircraft from Airbus and Boeing, but only 70 of those are widebody planes suited to fly transcontinental routes. India's largest domestic carrier, IndiGo, has also made a change in business strategy and ordered 30 Airbus A350 aircraft to venture into long haul travel.

An executive of a private airport conveyed Clark's viewpoint, stating that there was no justification for India to adopt a protectionist stance, given the substantial demand both to and from the country. They pointed out that airports such as those in Hyderabad and Bengaluru had made significant investments and expanded their terminals. The executive noted that, apart from Air India, Indian carriers were still not adequately equipped to initiate more international flights. They suggested that the government should consider granting ad hoc bilateral rights to foreign airlines until Indian carriers were prepared. Otherwise, the executive warned, the additional capacity would remain unused, resulting in a loss of business.

According to Emirates President Tim Clark, Indian travellers may have fewer options on international flights as New Delhi aims to expand the reach of its own carriers outside domestic airspace by restricting the number of seats available on foreign airlines in one of the largest outbound travel markets globally. The biggest international airline that flies into India is Emirates. The National Democratic Alliance (NDA), which is expected to win a five-year term in office, has blocked foreign airlines' ability to expand, especially those from the Middle East. This is meant to incentivize these carriers to operate wide-body aircraft and offer direct flights to North America and Europe.. Clark stated on the sidelines of the Annual General Meeting of the International Air Transport Association (IATA) in Dubai that he understood the Indian government was considering the policy with the intention of safeguarding their own carriers, particularly by providing some leeway to Air India, which had been privatized. However, he expressed his belief that it would not be effective in the long term and would have adverse effects on their economy. The last time flying rights to Dubai were increased was in 2014. The agreements that were made at the time permit Emirates to run 66,284 seats in India. But since then, traffic between India and Dubai has increased dramatically, and carriers on both sides have used up all of their allotted space. According to official sources, the UAE has requested that the Indian government supply an additional 50,000 seats per week, and the incoming administration will decide how to proceed with this request. According to travel data analytics company OAG, the Delhi-Dubai route is among the busiest in the world. Air India, which is attempting to boost business on routes from India following the Tata group's purchase, has backed the government's protectionist decision. In 2023, the airline placed an order for 470 aircraft from Airbus and Boeing, but only 70 of those are widebody planes suited to fly transcontinental routes. India's largest domestic carrier, IndiGo, has also made a change in business strategy and ordered 30 Airbus A350 aircraft to venture into long haul travel. An executive of a private airport conveyed Clark's viewpoint, stating that there was no justification for India to adopt a protectionist stance, given the substantial demand both to and from the country. They pointed out that airports such as those in Hyderabad and Bengaluru had made significant investments and expanded their terminals. The executive noted that, apart from Air India, Indian carriers were still not adequately equipped to initiate more international flights. They suggested that the government should consider granting ad hoc bilateral rights to foreign airlines until Indian carriers were prepared. Otherwise, the executive warned, the additional capacity would remain unused, resulting in a loss of business.

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Next Story
Infrastructure Urban

Ministry of Cooperation Inaugurates NCOL Organic Packaging Facility

The Ministry of Cooperation inaugurated a new state-of-the-art packaging facility of National Cooperative Organics Limited (NCOL) in Noida, Uttar Pradesh. The centre is dedicated to packaging pulses and organic products while maintaining high hygiene and quality standards. Dr Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, called the facility a major milestone in promoting the Bharat Organics brand. The initiative aims to empower farmers and expand access to certified organic produce across India, while offering premium prices to farmers and affordable organic food to consumers. Un..

Next Story
Infrastructure Urban

Adani Airport Seeks $750 Million Loan from Global Banks

Adani Group is in discussions for an offshore loan of up to $750 million for its airport arm, Adani Airport Holdings Limited, with international banks such as Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc. The funds will support capital expenditure and repay dollar-denominated debt maturing in September. The deal is expected to conclude by early May. Adani Airport Holdings Limited operates seven major airports across India and is preparing to open a new international hub worth $two billion on the outskirts of Mumbai. This would be the Group’s second significant o..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?