India, UAE open skies deal key to lowering airfares

Doubling capacity on routes will help travellers save $1.05b, says report

- DHANUSHA GOKULAN

Is an open skies policy or the liberalisation of air traffic between the UAE and India the only way to slash airfares?

While UAE carriers, including Emirates, flydubai, and Air Arabia, have been advocating for this over the past decade, bilateral seat entitlements for Dubai (66,000) and Abu Dhabi (50,000) have remained stagnant since 2014-2015.

A new report released by the Observer Research Foundation and the UAE Embassy in India makes a strong case for liberalising air service agreements between the two countries. The study indicates that even a 1 per cent rise in passenger volume from India to the UAE correlates with an approximate 0.2 per cent drop in average airfares.

Peak period fare surges