UAE proposes increased aviation connectivity to boost bilateral ties and benefit Indian carriers
Airfares between India and the United Arab Emirates (UAE) could drop by 20% on certain routes if air travel capacity between the two nations doubles over the next five years, UAE Ambassador to India, Abdulnasser Jamal Alshaali told CNBC-TV18.
This reduction could translate to $1 billion in savings for Indian travelers, reported cnbctv18.com.
UAE Proposes 4:1 Air Connectivity Arrangement
The UAE has proposed a 4:1 aviation capacity expansion ratio to strengthen flight connectivity and benefit Indian carriers. This temporary measure would allow Indian airlines to operate four additional flights or expand seat capacity for every additional flight granted to UAE carriers.
The ratio is expected to be gradually reduced to 3:1, 2:1, and eventually 1:1, ensuring that Indian carriers scale up operations before reaching full competition with UAE airlines
Boosting Competition and Economic Growth
According to Alshaali, expanding air connectivity would:
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Make travel across India easier for tourists, increasing economic activity
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Improve consumer spending in local markets
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Reduce airfare burdens on Indian carriers, promoting a more competitive aviation market
“This will allow tourists to travel across India with ease, increasing economic activity and leading to reduced consumer prices,” he added.
India-UAE Partnership Beyond Aviation
Aviation cooperation is a priority in the broader India-UAE partnership, which includes defence collaboration and emerging technologies. The UAE is closely working with India to expand strategic petroleum reserves and explore sectors like genome sequencing and data centres.
Bilateral trade between the two nations has already exceeded $80 billion, with a 15% growth rate, solidifying their economic and strategic partnership.
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