According to Emirates, more seats to India from Dubai will result in lower flight costs.
Mohammed Sarhan, the CEO of Emirates India, stated that if India does not permit planes to fly additional seats to Dubai, airfares will continue to be high on some of the busiest routes around the globe.
Mr. Sarhan, vice president for India and Nepal at Emirates, stated in an interview that the company has been in the current air service agreement for around 10 years. “I think Indian airlines have also reached the upper limit, just like we have, he said. It’s time to normalise our business dealings and offer both parties a chance to advance.”
Airlines from both nations are allowed to drive a total of 66,000 seats per week between Dubai and 15 Indian destinations under the “Bilateral Air Services Agreement” that the UAE and India agreed in January 2014. The UAE asked the “Ministry of Civil Aviation” to expand the number of seats for Dubai to 50,000 last year.
Following COVID-19, airfares from Delhi and Mumbai to Dubai have skyrocketed, which is partially because of limitations on airline capacity between the two nations. Prices will increase if supply is constrained and demand is increasing, according to an Emirates official.
According to data from the travel booking website ixigo, prices for flights from Bangalore, New Delhi, and Cochin to Dubai have increased by an average of 45–50% since 2013.
Senior government officials recognised that workers flying the route have been hardest hit, but said that discussions on amending the ASA are stuck in a deadlock. However, the official, who spoke on the condition of anonymity, added that a political push is necessary to tackle the problem.
While the UAE and India have been looking into methods to develop their trade relations, such as through the recently formed UAE chapter of the Indian Business Council or the Comprehensive Partnership Agreement established last year, airline connections will also be a catalyst for these strengthened connections. Mr. Sarhan stressed the need for improvement.