lightsaber From United States of America, joined Jan 2005, 11923 posts, RR: 100 Reply 1, posted (1 year 1 month 2 days 17 hours ago) and read 1287 times:
This text from your link speaks volumes: Reversing its stance the civil aviation ministry has decided to negotiate with governments of Dubai, Abu Dhabi, Oman and Singapore to allow for more flights between India and these countries.
That is quite a reversal. I suspect it is due to the recovery of the Indian aviation market? Note, I'm asking as I do not know how the yields and load factors are right now.
From the link, it only mentions seats but not that Indian flights are near the frequency limit:
In its report CAG had noted the capacity on India-Dubai route increased from 10,000 seats/week in 2003 to 54,000 seats/week in 2008-09 and that Emirates was utilising 98 percent of the capacity but Indian airlines were utilising less than half of the approved capacity. In case of Qatar the capacity increased from 2872 seats/week to over 24,000 seats with Qatar Airways utilising over 18,000 seats and Indian airlines put together using 4,000-5,000 seats. Apart from additional seats per week foreign airlines were granted access to more Indian airports.
The indian carriers want more frequency, but are not close to the seat cap. The Dubai Carriers (EK and DH) want both. it will be an interesting negotiation. I notice the ministry only talks seats... fine.
But this isn't just about airlines. The GoI needs Dubai for the Chemical and Pharma industries. Bilaterals are never about one industry. Until more air service rights are granted, there is no reason for Dubai to sign a new bilateral in other industries. The reality is that growth in multiple industries in India is being held hostage to the ASA.
The big question is, will A380s be allowed into India? That will be an interesting debate.
Agree, and a good opportunity for Minister of Aviation to receive some large suitcases filled with gifts. Elections are likely to come soon, so I expect to see more revision to bilaterals before the next election.
This may hurt Indian carriers, but opening up of the market will benefit the consumers and the Indian economy a lot more.
lightsaber From United States of America, joined Jan 2005, 11923 posts, RR: 100 Reply 4, posted (1 year 1 month 2 days 11 hours ago) and read 1289 times:
Quoting LAXDESI (Reply 2): Agree, and a good opportunity for Minister of Aviation to receive some large suitcases filled with gifts. Elections are likely to come soon, so I expect to see more revision to bilaterals before the next election.
Sadly, after years of following Indian aviation here on a.net, I think your opinion of why this is happening now is 'spot on.'
Quoting LAXDESI (Reply 2): This may hurt Indian carriers, but opening up of the market will benefit the consumers and the Indian economy a lot more.
But will help those Indian carriers starting their international markets by going 'half way there' by providing more service to the competitions hubs.
Any hints on how much growth is expected in the bilaterals?
VIDP From India, joined Feb 2010, 157 posts, RR: 0 Reply 6, posted (1 year 1 month 2 days 5 hours ago) and read 1287 times:
Quoting lightsaber (Reply 1): The GoI needs Dubai for the Chemical and Pharma industries
Pharma in Dubai ? I though its India which has one of the highest number of generic drug manufactring companies in India. Infact LH has specially invested in cold chain centre at Hyd Airport to handle pharma.
Quoting Vimanav (Reply 5):
Quoting ojas (Thread starter):
For the records, India now does 200 weekly flights to DXB from 14 destinations
228 in Winter Sked 12
What is the weekly cap in flights? I know dubai based carriers are at their seat cap, but what is the flight cap? The prior MOU seemed to have no flight cap. Is that the case? If so, Indian airlines would not be the reason India signs a new MOU.
Quoting VIDP (Reply 6): Pharma in Dubai ? I though its India which has one of the highest number of generic drug manufactring companies in India.
Dubai is the mid-East distribution center for chemicals and pharma (an offshoot of their early contract refining and flower transportaton) and they are the enabler for India pharma growth in the mid-east, Russia, and parts of Africa. However, just as there is a cap on how many Indian laborers re-negotiated in each bilateral, so are the other aspects.
No one else has the climate controlled warehouses to handle temperature sensitive goods as well as EK and the other parts of the Dubai supply chain. I find it ironic that EK's initial focus on those warehouses was flowers and the higher margin and now more profitable for all parties pharma business just seemed to grow naturally.
I'm just pointing out there are other aspects of the bilateral that must be negotiated and that India benefits from the trade. This forum tends to purely focus on the air service agreements which is natural, but when it comes to bilaterals, the other aspects are far more important for India.