Mumbai/New Delhi: The GMR and GVK groups, which run the Delhi and the Mumbai airports, respectively, have strongly opposed a plan to increase air traffic rights between India and Abu Dhabi, fearing an adverse impact on their hub prospects. The two companies have taken up the issue of opening up the skies to United Arab Emirates (UAE)-based Etihad Airways with the civil aviation ministry, which would negotiate an air service agreement with UAE next week.
Air service agreements dictate the frequency, number of seats and destinations for airlines operating between two countries. Typically, the benefits are reciprocal in nature. The Delhi airport’s opposition comes in the wake of Jet Airways’ plans to seek 40,000 additional seats between India and Abu Dhabi.
Currently, airlines from both sides are allowed 13,000 seats a week. Following Etihad’s acquisition of stake in Jet Airways, the UAE-based airline would tap into the Indian market to feed its global routes. This has led to jitters among Indian airlines and airports. The move, aviation sources said, would impact all other airlines, especially Air India, which flies to Europe and the US. “Not even Emirates has been allowed so many seats at one go. Etihad can demand a similar number of additional seats,” said an executive at a private airline.
Jet Airways flies to Abu Dhabi from Mumbai and Delhi, while Etihad connects 10 UAE cities with India.
19/04/13 Aneesh Phadnis & Disha Kanwar/Business Standard
