India's national auditor yesterday launched a scathing attack on Emirates Airline, recommending it and other Gulf airlines should be forced to reduce services to the subcontinent.
The comptroller and auditor general of India said in a report to parliament that Air India's business was being damaged by the freedom of Gulf carriers and that liberalisation in 2004 of air entitlements to foreign carriers "left much to be desired".
"Clearly, the Gulf sector was [Air India's] most profitable international segment before the liberalised policy on entitlements," the report said.
The Indian recommendation is the latest in a long line of disputes between the UAE and other countries over the dominance of Emirates and Etihad Airways.
Both Air Canada and Lufthansa have sought to restrict landing rights of UAE carriers in the past year. The Canadian dispute escalated into a full-blown diplomatic spat.
India is one of the largest markets for the UAE's carriers, helping to feed traffic into the long-haul networks of Emirates and Etihad as well as direct travel for the budget carriers flydubai, Air Arabia and RAK Airways.
09/09/11 Rory Jones/The National
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