The Enforcement Directorate has alleged that a substantial jump in seat entitlements and Indian points-of-call (airports) for the operation of foreign airlines, due to bilateral agreements struck with the United Arab Emirates (UAE) and Qatar between 2005 and 2009, resulted in huge losses to the national carriers.
Being a signatory to the Convention of Civil Aviation, India has to comply with its principles. As part of the arrangement, two countries hold talks to decide routes and allocation/increase of seats on the basis of equality and reciprocity.
Under these agreements, traffic rights and capacity entitlements are exchanged based on market requirements. They specify the entitlements in terms of frequency of operations, number of seats and airport.
Between 2005 and 2009, India held bilateral meetings with the UAE and Qatar.
After each meeting, the ED alleges, a substantial increase in seat entitlements and airports was made, from which the airlines of both the countries allegedly gained more than the Indian carrier. In case of the UAE, the agreements were held separately for Dubai, Sharjah, Abu Dhabi and Ras-al-Khaima.
According to the data quoted by the agency, under the agreement with respect to Dubai, seat entitlements for the Emirates were 8,400 up to 2001. However, after three agreements in 2005, 2007 and 2008, they went up to 54,200. “Finally, the seats were increased to 54,200 and points of call to 10 during the meeting held on April 23, 2008,” the ED says.
16/06/19 Devesh K Pandey/The Hindu
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Being a signatory to the Convention of Civil Aviation, India has to comply with its principles. As part of the arrangement, two countries hold talks to decide routes and allocation/increase of seats on the basis of equality and reciprocity.
Under these agreements, traffic rights and capacity entitlements are exchanged based on market requirements. They specify the entitlements in terms of frequency of operations, number of seats and airport.
Between 2005 and 2009, India held bilateral meetings with the UAE and Qatar.
After each meeting, the ED alleges, a substantial increase in seat entitlements and airports was made, from which the airlines of both the countries allegedly gained more than the Indian carrier. In case of the UAE, the agreements were held separately for Dubai, Sharjah, Abu Dhabi and Ras-al-Khaima.
According to the data quoted by the agency, under the agreement with respect to Dubai, seat entitlements for the Emirates were 8,400 up to 2001. However, after three agreements in 2005, 2007 and 2008, they went up to 54,200. “Finally, the seats were increased to 54,200 and points of call to 10 during the meeting held on April 23, 2008,” the ED says.
16/06/19 Devesh K Pandey/The Hindu
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