A new report has revealed how opening up flights between India and the UAE could slash fares, create jobs, and unlock over $1 billion in savings, but red tape is keeping passengers grounded.
The study, ‘Combined Skies: Unlocking the Benefits of UAE-India Aviation Liberalisation for Indian Travellers’, breaks down the huge economic benefits of expanding air services. Part of a broader investigation into a possible overhaul of UAE-India flight agreements, the report examines how tourism, trade, job creation, and even regulatory hurdles could be transformed by liberalisation. But with flights already packed, will authorities act before it’s too late?
Flights At Breaking Point!
India’s aviation market is soaring, set to double by 2030. UAE-India flights carried 19 million passengers in 2023, 30% of India’s total international traffic. Yet strict government limits on air services are choking growth, keeping flights expensive and hard to book.
Big Money, Bigger Roadblocks
The UAE is India’s third-largest trading partner, with trade soaring to $84 billion last year. More flights mean faster business trips, smoother cargo movement, and stronger economic ties. But without urgent action, both nations risk losing out on billions in trade and investment.
Tourism Nightmare?
UAE travellers flock to India for medical treatments, business, and holidays, but tight flight caps make trips more expensive and less frequent. Expanding air routes could supercharge tourism and create thousands of jobs in airports, airlines, and hospitality.
Passengers Could Save Big
More flights = cheaper tickets. A modest 5% annual increase in seat capacity could save Indian travellers $152 million by 2028. But go big, double capacity over five years, and that jumps to a jaw-dropping $1.05 billion.
Who Gets Cheaper Flights?
Not all routes will see huge price drops. Delhi–Dubai and Mumbai–Dubai are maxed out—more flights won’t slash fares much. But for smaller Indian cities, adding flights could send ticket prices tumbling and unleash massive demand.
India and the UAE are sitting on an aviation jackpot, but they need to act now before the opportunity flies away.
(Source: www.orfonline.org)
