Emirates Airlines Set to Expand Operations to Tier-II Cities in India

By Agnibeena Ghosh

Emirates, the Dubai-based airline known for its extensive global network, is gearing up for a significant expansion in India. With its current presence in nine major Indian cities, Emirates is now eyeing tier-II cities for further growth. The airline’s Vice President for India and Nepal, Mohammad Sarhan, shared this ambitious plan, emphasizing that it is contingent on additional capacity allocation for Emirates.

This move follows remarks made by Tim Clark, the head of the United Arab Emirates’ flag carrier, who asserted that Indian airlines are missing out on substantial revenues, estimated at $800-900 million. The primary reason cited for this revenue gap is the existing limited bilateral agreements between India and Dubai. These agreements have imposed restrictions on the number of seats available for airlines flying between the two countries. Clark voiced the need to expand the current weekly seat limit of 65,000 to accommodate the growing demand.

The debate surrounding the need for increased airline seat allocation between India and Dubai has been ongoing for the past five years. Indian travelers, particularly those transiting to Europe and the United States, have increasingly relied on carriers like Emirates. However, Indian airlines operating direct flights to Europe and the U.S. have shown reluctance to further enhance flying capacity to West Asia. Their concern primarily revolves around the potential negative impact on the passenger load factor of their own direct flights.

Emirates has solidified its position as a key player in the Indian aviation market, especially within its hub, Dubai. During the summer season, Emirates successfully transported over 14 million passengers, achieving average seat load factors exceeding 80% across its extensive global network to and from Dubai. This demonstrates the airline’s robust presence and popularity among travelers.

Aside from India, Emirates has identified other significant markets that contribute to its success. These include the United Kingdom, Germany, Pakistan, Saudi Arabia, China, Egypt, and Kuwait. Sarhan pointed out that seat load factors to destinations in India consistently exceed 90% during peak travel seasons. The major routes from India to which Emirates operates include Dubai, the United States, the United Kingdom, Canada, Saudi Arabia, Australia, and select parts of Europe.

Emirates’ eagerness to expand its operations in India is a testament to the country’s importance within its global network. The airline is not only looking to increase its presence in major cities but also recognizing the potential in tier-II cities. These cities, although smaller in scale compared to India’s metros, offer a vast pool of passengers with growing demand for international travel.

The proposal to allocate additional capacity for Emirates in the India-Dubai corridor stems from the rising number of Indian travelers opting for Emirates as their preferred carrier for international journeys. This preference is driven by Emirates’ exceptional service quality, extensive connectivity, and Dubai’s position as a global aviation hub. With this expansion plan, Emirates aims to tap into the untapped potential of tier-II cities in India, bringing them closer to the world and facilitating seamless international travel for a broader demographic.

The demand for additional airline seats between India and Dubai has grown steadily over the years. Travelers in India increasingly choose Dubai as a transit point for their onward journeys to Europe and the United States. The robust network and convenient connections offered by Emirates make it a preferred choice for many. As the demand for these routes continues to rise, it becomes essential to address the limitations imposed by bilateral agreements to allow further growth.

On the flip side, Indian airlines that operate direct flights to key international destinations have expressed concerns about expanding capacity to West Asia. The fear is that the availability of more flights to transit hubs in the region, such as Dubai, might negatively impact the passenger load factor of their direct flights. Balancing the interests of both international and domestic carriers will be crucial in any negotiations to increase seat capacity between India and Dubai.

In spite of the challenges and ongoing debates, India remains a pivotal market for Emirates. The airline’s commitment to offering world-class service and seamless connectivity continues to attract travelers from all corners of India. As Emirates looks towards expanding into tier-II cities, it is clear that the airline recognizes the potential for growth in these regions and the critical role they play in India’s aviation landscape.

News Mania Desk / Agnibeena Ghosh 1st November   2023