Font size:
Print
Remodelling the UAE-India Aviation Partnership
Introduction:
The aviation sector plays a crucial role in enhancing bilateral ties, economic integration, and trade partnerships between India and the United Arab Emirates (UAE).
- The existing aviation agreements have reached their full capacity, necessitating restructuring to meet the growing demand and optimise connectivity.
- With India’s expanding aviation market and infrastructure development, there is a need for a progressive approach towards regulations and partnerships.
India’s Growing Aviation Ambitions
- India has emerged as the third-largest domestic aviation market globally.
- Infrastructure expansion with projects like Navi Mumbai International Airport demonstrates India’s commitment to transforming into a global aviation hub.
- Government initiatives such as Ude Desh Ka Aam Nagrik (UDAN) scheme aim to connect Tier-2 and Tier-3 cities, fostering regional connectivity.
UAE’s Role as a Strategic Aviation Partner
- The UAE is India’s largest outbound travel market, with 4.5 million Indian tourists visiting in 2023.
- Indian carriers operate 600+ weekly flights to the UAE, while UAE carriers operate 500+ weekly services to India.
- However, the existing bilateral air service agreement limits UAE carriers to only 15 Indian cities, leading to supply-demand mismatches and high ticket prices.
- Major Indian growth centres such as Surat, Visakhapatnam, Indore, Tiruchirappalli, and Patna remain unconnected to UAE carriers.
Challenges in the Existing Framework
- Restrictive bilateral agreements contribute to increased ticket prices, limiting travel options for citizens.
- Capacity saturation prevents both Indian and UAE carriers from expanding services despite growing demand.
- Lack of seamless connectivity hampers broader investment, trade, and economic partnerships.
The Need for a Modernised Strategy
- Just as India and UAE enhanced trade ties through the Comprehensive Economic Partnership Agreement (CEPA), a modernised aviation strategy is crucial.
- A revised agreement will act as an economic multiplier, driving investment, and enhancing regional and international connectivity.
- Knowledge-sharing, pilot training, and investment in Maintenance, Repair, and Overhaul (MRO) facilities will boost India’s aviation ecosystem.
Way Forward to boost Cooperation
- Urgent renegotiation of the existing bilateral air service agreement to accommodate rising demand.
- Expansion of operating rights for UAE airlines to new Indian cities while allowing Indian carriers to increase frequencies to the UAE.
- Policy reforms to facilitate foreign investment in India’s aviation infrastructure.
- Strengthening people-to-people ties by enhancing travel ease and reducing costs.
- Boosting Investment Opportunities and Collaborations
-
- UAE’s investment in the UDAN scheme can enhance connectivity in underserved regions.
- Strengthening India’s aviation infrastructure through partnerships in airport development and MRO services.
- Promoting India’s tourism sector through better connectivity and travel incentives.
- Ensuring win-win outcomes for airlines through an equitable regulatory framework.
- Enhancing Cooperation over Competition
-
- The creation of a combined aviation ecosystem will ensure mutual growth rather than competition.
- India’s cities can emerge as global aviation hubs like Dubai and Abu Dhabi through better connectivity and infrastructure.
- Improved connectivity will lead to inclusive economic growth, benefiting both nations and beyond.
