IndiGo CEO Responds to Emirates’ Push for More Bilateral Flights

Swift summary

• Context: indigo CEO Pieter Elbers addressed Emirates Airlines’ demand for increased flying rights between Dubai and India at the IATA AGM in New Delhi, without directly naming the airline.
• Emirates’ Position: Emirates Airlines president Tim Clark highlighted that bilateral flying rights (65,000 seats in both directions) have remained stagnant for over 11 years despite exponential growth in air travel demand and the Indian population residing in Dubai (now exceeding 80 lakh).
• IndiGo’s Response: Elbers argued that bilaterals are mutual agreements requiring balance. He emphasized India’s approach of prioritizing utilization of existing traffic rights by Indian carriers before expanding foreign access.
• Air India’s View: Campbell Wilson stated last year that granting more flying rights to UAE-based airlines would undermine Indian airlines investing heavily in fleet expansion.
• Industry Insight: IATA DG Willie Walsh remarked that as Indian carriers expand globally, there should be adjustments to existing policies on international flight access.

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IndiGo CEO discusses bilateral agreements at IATA AGM.

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Indian opinion Analysis

India’s aviation policy prioritizing domestic carrier development reflects a strategic focus on national interest amid global pressures. The pushback from IndiGo and earlier remarks from Air India underscore a drive to safeguard market opportunities for local airlines investing heavily into expansion efforts. While Emirates highlights strong travel demand between Dubai and India, allowing more foreign capacity risks overcrowding bilateral arrangements without fully leveraging potential benefits for domestic operators.

India’s gradual negotiation of air service agreements aligns with fostering balanced growth across international routes while securing operational stability for its own carriers. This measured strategy safeguards against disproportionate reliance on foreign carriers-a key concern voiced by industry leaders repeatedly over recent years-and underscores India’s ambition of strengthening its aviation sector globally. However, adaptability may become necessary as market dynamics evolve with the expansion of Indian fleets worldwide.