Doubling capacity on India-UAE routes can help travellers save $1 billion: report

DUBAI: Titled “Combined Skies: Unlocking the Benefits of UAE-India Aviation Liberalisation for Indian Travellers”, the report by the Observer Research Foundation and the UAE Embassy in India makes a strong economic case for expanding bilateral air service agreements between the two nations.

Despite sky-high travel demand, air traffic rights between India and the UAE have remained frozen since 2015, with 66,000 weekly seats to Dubai and 50,000 to Abu Dhabi—a cap that is increasingly out of sync with growing demand.
The report argues that doubling current capacity over five years could not only reduce soaring peak-season airfares—often 100% higher than off-peak rates—but also improve accessibility to price-sensitive, smaller Indian cities that are currently underserved.
“Liberalising air service agreements between the UAE and India could generate over $1 billion in consumer surplus for Indian travellers and significantly boost bilateral trade,” UAE Ambassador to India, Abdulnasser Jamal Alshaali, told CNBC-TV18.

While UAE carriers like Emirates, Etihad, flydubai, and Air Arabia have long advocated for expanded access, India has hesitated—citing concerns over domestic carriers’ financial health and global competitiveness.

The report also recommends a phased liberalisation strategy, increasing seat entitlements by 5% annually, while encouraging joint investments in Indian airports, workforce development, and green aviation technologies.

With passenger traffic hitting 19 million in 2023—nearly 30% of India’s international air traffic—the UAE-India corridor stands on the brink of transformation.