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Foreign carrier ambitions in India may be curtailed by bilateral policy

4-May-2011

International traffic to/from India in FY2010/11 saw strong and steady growth of just more than 10%. But CAPA believes that this could have been higher had there not been a freeze on the granting of additional bilateral rights with key markets. The freeze was the result of Indian carriers concerned about the level of access provided to foreign carriers (particularly from the Gulf) during a time when Indian international carriers were relatively weak and unable to deploy increased capacity to overseas destinations. To receive monthly in depth reports on India, subscribe to CAPA's Monthly Essential India. [874 words]

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Subheadings:

  • Gulf carriers see continued growth opportunities
  • Trade and diplomacy expected to play a greater role
  • Alliances may influence future stance
  • Indian carriers in no rush to negotiate more rights
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