Adani Airport on Wednesday asked India to ease restrictions on the number of seats that foreign airlines can sell on flights to and from the country, saying the restrictions are hampering India’s ambitions to become a global aviation hub.
The restrictions are part of bilateral air service agreements and are intended to protect domestic airlines, but have long been a source of frustration for foreign airlines. Dubai’s Emirates Airline, for example, said demand far exceeds the weekly seat cap under bilateral agreements between India and the UAE.
“In the short term, the growth of the Indian aviation industry will be constrained by bilateral agreements,” Adani Airports CEO Arun Bansal said during a panel discussion at the Indian Air Show in Hyderabad.
“For India to become a hub, we need an open skies approach.”
An Indian government spokesperson did not respond to a request for comment.
India is the fastest growing aviation market in the world. Adani Airports, part of billionaire Gautam Adani’s group, operates eight airports and plans to bid for 11 more as part of an $11 billion expansion strategy.
Indian airlines, including market leader IndiGo, have backed the government’s decision to keep seat caps in place, arguing that rapid liberalization of bilateral trade could weaken domestic airlines, which continue to expand their fleets.
(Reporting by Abhijit Ganapavaram in Hyderabad; Editing by Aditya Kalra and Mark Potter)
