KEY STORY
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In order to help domestic carriers, ravaged by the pandemic, expand globally the aviation ministry is discussing a plan to unilaterally reduce foreign flying rights granted to the United Arab Emirates (UAE), Qatar and Germany, the Economic Times reported.
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Although this may be beneficial for Indian carriers, which plan to expand internationally, it could lead to higher fares and reduced connectivity for passengers once regular international flights resume.
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As per the financial daily, as part of the proposal being discussed, the ministry plans to merge the UAE bilateral into one and reduce each emirate’s foreign flying rights by a third.
Foreign carriers may resist the move
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“Plan is to merge foreign flying rights of Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah among others into one under UAE and reduce the allocation by a third of the current allocation. Our (Indian) carriers do not have to take a cut,” the publication quoted an unnamed government official as saying.
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The official added that no formal proposal has been sent to these countries yet and the plan is still being discussed with, among others, the external affairs ministry. The idea is to help Indian carriers expand internationally as a substantial number of people going to Europe and Americas fly through these hubs, the person said.
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If the plan is accepted by the UAE, the quota for Dubai and Abu Dhabi will be cut by about a third from 65,200 seats per week and 50,000 seats per week respectively.
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However, foreign airlines may resist the move. The publication citing a foreign airline executive said any plan to reduce rights isn’t likely to be accepted. Most carriers, including those in the Gulf, have been devastated by the pandemic and will resist attempts to rein in their business. A similar reduction is being discussed for Qatar and Germany. Another government official told ET fares will rise if the plan is implemented.
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“Also, it will be very difficult for our airlines to reach the current connectivity levels provided by these network carriers,” the official said.
