Tuesday, October 22, 2019

Higher seat quota for Gulf carriers on cards even as old deals under scanner

New Delhi: After agreeing to expand flying rights with Saudia Arabia, the Civil Aviation Ministry would hold talks with the United Arab Emirates (UAE) on Wednesday to consider their demand to raise bilateral seat quota for designated carriers of the two sides.

The higher seat quota will allow the airlines from the two sides to operate more flights.

With alleged role of middleman in negotiations for higher seat quota with the Gulf countries during the UPA-II government, the new government had almost put on hold the demand for further raising the seat entitlements.

Official sources indicated that the Indian side may not immediately agree for raising quota with the UAE that would benefit foreign carriers like Emirates and FlyDubai.

Among key demands, the UAE may press for designating Air Arabia as carrier from Ras Al Khaimah, one of the Emirates, and use the bilateral seat entitlements. RAK Airways, the official airline of Ras Al Khaimah, shut down in 2014 and Air Arabia is eyeing the unutilised quota. The designated airlines from India and Ras Al Khaimah are entitled to operate 1,428 seats per week.

The Ministry is, however, unlikely to agree to this given that in response to a Parliament question it had earlier said that the proposal is beyond the scope of existing bilateral air service agreement (ASA).

Article 3 of the ASA between India and UAE gives rights to both the parties to designate airlines.

"...the entitlement of each Emirate is specifically meant for designated airlines of that Emirate only and therefore Air Arabia which is designated airline of Sharjah can not utilise the entitlements of UAE (Ras Al Khaimah) at the same time," the then Civil Aviation Minister Jayant Sinha had said in Parliament.

In what suggests the government has now decided to remove virtual freeze on negotiations for more seat quota with the Gulf and Middle East countries, India last week agreed to enhance bilateral quota with Saudi Arabia by about 10,000 weekly seats.

Sources said that the move would help Saudi Arabia diversify its economy and boost tourism sector. Given that Saudi Arabia now wants to reduce its dependence on oil and focus on tourism as a major growth driver, the higher seat quota will help its airline get passenger feed from India.

The designated airlines of India and Saudi Arabia are currently entitled to operate 28,000 seats weekly from each side.

It has been reliably learnt that sale-bound national carrier opposed the government move but its suggestion was rejected.
21/10/19 IANS/Outlook
To Read the News in full at Source, Click the Headline

0 comments:

Post a Comment