India Holds Firm on Bilateral Air Services Agreement

Inside India's Decision to Postpone Air Services Agreement Revisions

Air Services :- In a resolute stance on its bilateral air services agreement, India has rebuffed appeals from countries like the UAE, Singapore, and Indonesia seeking increased flying rights. The Indian government, committed to nurturing domestic carriers, has put a hold on granting new rights until they attain a specific scale in the international arena.

Air Services  of  India :-

The demand surge before the COVID-19 pandemic and the subsequent easing of travel restrictions prompted countries to push for expanded air service arrangements. However, insiders suggest that fresh bilaterals, especially with aviation hubs, are currently off the table.

A government official, preferring anonymity, stated, “There are plans by Indian carriers to expand in the international space…any fresh bilaterals to countries with hubs is out of the question.”

This decision aligns with significant aircraft orders placed by Air India (470 aircraft) and IndiGo (500 aircraft). Air India focuses on both short-haul and long-haul international routes, while IndiGo gears up for short-haul international expansion.

At the core of the issue are the air service agreements (ASA) between countries, and India currently has agreements with 109 nations. Notably, revisions haven’t occurred since 2014, despite appeals from major airlines like Emirates, Qatar Airways, Singapore Airlines, and Turkish Airlines.

Critics argue that Bharat’s reluctance hampers global aviation growth, a sentiment echoed by an official from a country seeking revision. They challenge India’s negotiation position, asserting that countries typically negotiate based on existing seat capacity, not future aircraft deliveries.

Emirates’ president, Tim Clark, emphasized his airline’s commitment to contributing to Bharat’s growth, while Dubai Civil Aviation Authority’s director general urged Bharat to consider additional destinations for Dubai-based carriers.

Qatar and Malaysia have persistently sought increased flying rights, with Qatar aiming for a three-fold increase. However, Bharat, guided by the National Civil Aviation Policy, may wait until pre-pandemic flight levels return.Industry experts differ on the government’s strategy. Travel Agents Federation of India (TAFI) president, Ajay Prakash, sees it as a move to protect the domestic industry, while others like Mark Martin advocate for relaxing bilateral arrangements and transitioning to open skies for passenger transport.

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Air IndiaBilateral Air Services AgreementEmiratesIndian Airway
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