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
Real Estate

We are executing data-centre projects in MMR region: Paradigm Realty

Certain areas of Mumbai showcase tremendous opportunity for redevelopment, as Parthh K Mehta, CMD, , explains. He speaks about his company’s plans for this region, adherence to quality, use of technology and its strategies and plans for data centres and further expansion going forward. Excerpts:According to a Knight Frank India report, there's been a noteworthy rise in property registrations in Central and South Mumbai and Bandra and Worli showcase the opportunity for redevelopment. Does the group have any plans for this region? We recognise that Mumbai as a city is continuall..

Next Story
Real Estate

Windows to world

India’s current crop of tall and super tall buildings has an advantage over predecessors: openable windows. Codal provisions and ensuing market developments are behind this change. “Until a decade or so ago, we lacked designs and products enabling openable windows for glass façades,” explains Rajan Govind, Director, Facade+Construction Tech Specialist, BES Consultants. “It is only more recently that the National Building Code 2016 has released detailed façade requirements, which make openable windows mandatory.”The National Building Code 2016 mandates 10 per cent openable..

Next Story
Real Estate

New Terminal Building – Kolhapur Airport

On 10 March 2024, Prime Minister Narendra Modi officially inaugurated the new terminal building at Kolhapur Airport. The terminal is part of a broader development initiative valued at about Rs 2.56 billion, which includes the construction of the terminal, runway extensions, new apron and parking bays. Designed by Gian P Mathur Architects & Planners (GPM), the terminal's architecture draws inspiration from Kolhapur’s heritage and has earned a four-star GRIHA rating.Design and featuresDiscussing the design brief, Anil Shinde, Kolhapur Airport Director, Airports Authority of India (AAI), sa..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000