Why in the News?

The UAE’s potential role in supporting India’s ambition to become a global aviation powerhouse has been highlighted due to increasing collaboration between the two nations in the aviation sector.

What are the key challenges faced by the India-UAE aviation sector?

• Restricted Bilateral Air Service Agreements: Limited flight frequencies and destination access for both Indian and UAE carriers. Example: UAE airlines can operate flights to only 15 Indian cities, excluding key growth centers like Surat and Indore despite high passenger demand.
• Capacity Constraints and Rising Airfares: Limited flight slots lead to insufficient capacity, causing increased ticket prices. Example: During peak travel seasons, such as festivals or school holidays, airfares between India and the UAE surge due to restricted airline capacity.
• Limited Connectivity to Emerging Cities: Many Tier-2 and Tier-3 Indian cities lack direct UAE connections. Example: Business hubs like Visakhapatnam and Patna face limited or no direct international flights to the UAE, restricting trade and tourism.
• Inability to Meet Growing Passenger Demand: Rapid growth in Indian outbound travel is unmet by the current aviation framework. Example: Despite 4.5 million Indian tourists visiting the UAE in 2023, airlines struggle to increase operations due to bilateral restrictions.
• Missed Economic and Strategic Opportunities: Limited flight options restrict business engagement, investment, and tourism growth. Example: The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE aims to boost trade, but insufficient air connectivity hinders the free flow of goods and professionals.

Why is there a need for a modernized aviation strategy between India and the UAE?

• Meeting Rising Passenger Demand: A revised aviation strategy is crucial to handle the increasing flow of Indian travelers to the UAE. Example: For every 1% increase in passport holders, approximately 10 million additional Indian travelers are expected, which the current framework cannot accommodate.
• Lowering Airfares and Improving Access: Expanding bilateral agreements can boost flight availability, foster competition and reduce travel costs. Example: During peak seasons, limited flights cause sharp increases in ticket prices, making travel between India and the UAE expensive.
• Expanding Connectivity to Regional Cities: Modernising aviation policies can facilitate direct flights from Tier-2 and Tier-3 Indian cities to the UAE, enhancing regional growth. Example: Cities like Surat, Patna, and Visakhapatnam remain disconnected from the UAE, hindering trade, tourism, and cultural exchanges.
• Boosting Trade and Economic Cooperation: Improved air services can strengthen business ties and enhance trade between India and the UAE. Example: Despite the CEPA agreement aimed at fostering economic collaboration, restricted flight options limit the movement of professionals and goods.
• Advancing Aviation Infrastructure and Innovation: A modernized strategy encourages collaboration in aviation technology and infrastructure development. Example: UAE investments in India’s UDAN scheme can improve regional connectivity and support India’s goal to become a leading aviation hub.

Which Indian cities are currently excluded from UAE airline operations despite growing demand?

• Cities Not Fully Integrated: Emirates has not yet expanded its services to cities like Amritsar, Lucknow, and Goa Mopa, despite growing demand. These cities are not explicitly excluded but rather await service expansion due to current operational limitations and bilateral agreements.
• Bilateral Restrictions: The current bilateral agreements between India and the UAE limit the number of seats available for UAE airlines, which can restrict the expansion of services to new cities. While there are no specific cities excluded, the capacity constraints under these agreements affect the ability of UAE airlines to meet demand in various Indian cities.

What initiatives can the UAE undertake to support India’s ambition to become a global aviation powerhouse?

• Expanding Aviation Agreements: The UAE-India Comprehensive Economic Partnership Agreement (CEPA) aims to improve air travel and cargo transport between the two countries. Increasing the current limits to 134,000 weekly passenger seats and 4,000 tonnes of cargo through relaxed rules can boost trade and improve connectivity.
• Using UAE’s Logistics Strength: The UAE’s major airports, like Dubai International and Al Maktoum International, can help meet India’s growing air cargo needs.
  • Working together can make cargo transport faster and more efficient between the two nations.
• Improving India’s Aviation Sector: India, as the third-largest domestic aviation market, can learn from the UAE to improve international flights and upgrade airport facilities.

Way forward:

• Enhancing Policy Frameworks: India can revise its aviation policies to allow greater flexibility in bilateral agreements, enabling increased flight frequencies and better access for UAE carriers.
  Example: Updating the Open Sky policy for Gulf nations can promote competition, reduce airfares, and improve passenger services.
• Strengthening Aviation Infrastructure:India can invest in upgrading airport capacity, regional connectivity, and advanced Maintenance, Repair, and Overhaul (MRO) facilities to accommodate increased traffic. 

Mains PYQ:

Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? (UPSC IAS/2022)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now