Each of the individual ME carriers dominates its own home market and has minor presence in each of the others. Air India is one of the few airlines that serves EVERY major MidEast market (DXB, AUH, MCT, BAH, DOH, DHA, RUH, JED, KWI) not just from BOM but from secondary gateways as well. Sure, EK operates 40 flights/week to India but those flights not only carry their India-DXB traffic, but also ALL onward connecting traffic to other MidEast destinations plus Europe etc... All AI's flights to the Middle East are predominantly O&D, something that is not true of EK, QR, WY, GF and whatever latest upstart showed up. So yes, AI does DOMINATE the India-MidEast market.
AI isnt exclusively focussing on this low-yield high-volume traffic, but is using it as the core markets upon which other focus markets can be identified. That is sound business sense.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada