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Financial Express Hyderabad

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June 04, 2025

Open skies work when both sides can fly equally, but with the Gulf, the playing field is inherently tilted

The just-concluded annual general meeting of the International Air Transport Association (IATA), Emirates President Tim Clark renewed calls for India to expand bilateral air service agreements with the UAE, decrying the current 65,000 weekly seat cap as outdated and restrictive. Clark's argument glosses over a key fact. India already offers liberal open skies agreements to countries like the US and UK where bilateral air travel benefits are more balanced and reciprocal.

In contrast, Gulf carriers rely disproportionately on Indian traffic to feed their global networks, creating structural asymmetry. India's measured stance on the UAE is not protectionist; it is strategic and long overdue. India's separate bilateral agreements with Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah have long been skewed in favor of Gulf airlines. In 2017, UAE carriers used up nearly 90% of their seat entitlements to India.

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