Doubling airline capacity on India-UAE routes will help Indian consumers save $1.05 billion: report

Doubling airline capacity through a liberalised air service agreement between India and the UAE will result in savings for Indian consumers exceeding $1.05 billion who are currently paying steep airfares, according to a joint report by the UAE Embassy and the ORF released on Wednesday. In a recent media interview, UAE Ambassador to India Abdulnasser Jamal Alshaali said that they have proposed a 4:1 seat ratio to the Indian government, but that needn’t be a “starting point”. It has also suggested collaboration to strengthen aviation hubs in both countries and “develop complementary strategies rather than competing for transit traffic.” It adds, “While Dubai and Abu Dhabi are established global transit hubs, India can position Delhi, Mumbai, and Bengaluru as secondary hubs feeding into UAE airports, reducing passenger loss to indirect routes via third countries.” This can be achieved through interline agreements between Indian and UAE airlines, mutual infrastructure investment where UAE can support Indian airport expansion projects through public-private partnerships such as the Adani Group’s partnership with Abu Dhabi Airports for Mumbai Airport management. Lastly, it has also proposed hub synchronisation strategies to optimise layover times and passenger flows “to boost the competitiveness of Indian airports while reinforcing the UAE’s role as a global aviation gateway.”