India-UAE air travel cost may fall 20%, with a doubling of capacity in 5 years

Moreover, the envoy stated that the UAE has proposed a 4:1 air connectivity arrangement with India, aiming to enhance flight connectivity and strengthen bilateral ties in the aviation sector.

“A ratio that was floated, and that doesn’t necessarily need to be a starting point or one that airlines would necessarily agree to, was a 4:1 ratio,” he said.

For context, under a 4:1 ratio, Indian carriers would be allowed to operate four additional flights or increase seat capacity for each additional flight or increased seat capacity granted to UAE carriers.

The UAE has positioned the 4:1 ratio as a temporary measure, which could later be revised to 3:1, 2:1, and eventually 1:1 as Indian carriers expand operations. The objective is to promote competition, increase air traffic, and improve connectivity beyond metro cities to tier-2 and tier-3 destinations.

“Expanding connectivity would make it easier for tourists to travel across India, increasing economic activity and consumer spending,” Alshaali said.

He added that greater competition would ease the burden on Indian carriers, preventing them from solely bearing the responsibility of serving the domestic market while allowing foreign airlines to transport passengers across India.

“This would allow tourists to travel across India with ease, leading to increased spending in the Indian economy. Additionally, consumer prices would begin to drop, as Indian carriers would no longer be solely responsible for serving the domestic market—carriers from other regions would also be able to transport passengers across India,” he said.

Aviation cooperation remains a priority in the broader India-UAE partnership, which also includes collaborations in defence and emerging technologies, he noted.

“We are looking at new cooperation in defence closely with India,” Alshaali said.

Trade between the two nations continues to flourish, with bilateral trade exceeding $80 billion and recording a 15% growth rate, Alshaali added. The UAE is also working with India to expand its strategic petroleum reserves and explore new sectors like genome sequencing and data centres.

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