Emirates President Tim Clark has voiced concerns regarding the long-standing stagnation of Dubai's bilateral agreements with India, despite exponential growth in travel demand. Speaking in Delhi at the IATA AGM on Sunday, Clark highlighted the critical need for increased flying rights to accommodate the burgeoning demand, stating that for every seat Emirates sells on India routes, there are approximately 10 potential passengers waiting.
The current air service agreement (ASA) between India and Dubai has remained unchanged for over a decade, restricting airlines from both countries to a maximum of 65,000 seats in each direction. Clark emphasized that this restriction has persisted for more than 11 years, a period during which travel demand has surged dramatically. He pointed out that Dubai's population has more than tripled in the last 15 years, with a significant 40% of its ethnic mix being of Indian origin, illustrating the immense scale of unmet demand.
Clark does not foresee the expansion of Air India and IndiGo's launch of long-haul flights to Europe impacting Emirates' substantial transit business through its Dubai hub. He believes the pent-up demand from India is so significant that the additional capacity from Indian carriers will primarily serve as a relief valve. He also wished Air India and IndiGo good luck in acquiring the necessary aircraft to meet their expansion goals.
Clark acknowledged the Indian government's current policy of restricting capacity for foreign carriers, while expressing hope for a change in approach. He urged Indian authorities to recognize the critical importance of air transport as a wealth creator and enabler of economic growth. He also noted that Dubai is one of the fastest growing cities in the world and that a large proportion of the population is of Indian origin. More seats given to Emirates would help support the Indian community that frequently travels to and from Dubai.
The lack of revised bilaterals has created a situation where demand far outstrips supply, leaving many potential travelers unable to secure seats. This not only inconveniences passengers but also limits the potential economic benefits that increased air connectivity could bring to both India and Dubai. The present situation highlights the necessity for a reassessment of existing agreements to reflect the evolving needs of the market and facilitate smoother travel between the two countries.