Etihad Airways' CEO Advocates for Increased Bilateral Flying Rights in India

Etihad Airways Group Chief Executive Antonoldo Neves has highlighted India's vast market potential and advocated for increased bilateral flying rights. In an interview, Neves stated that while Etihad's strategy is linked to India, it does not solely depend on it. He noted that India is one of the fastest-growing civil aviation markets globally, with expectations of reaching 300 to 450 million passengers in the next 10 to 15 years.

Neves emphasised the scarcity of aircraft as a significant challenge in the aviation industry. "The most scarce resource today in our world is not pilots. It's not mechanics. It is aeroplanes because if I had 10 planes today -- 10 wide-body aircraft -- even if I had zero bilateral in a particular country, I would fly those planes. So, what is really scarce are planes. And nobody has planes. And it's going to be like that for the next five years," he said.

India's Aviation Market and Bilateral Rights

India has not expanded bilateral flying rights for foreign airlines, particularly Gulf carriers, as domestic airlines aim to grow internationally. Gulf carriers are keen on more flying rights to meet rising demand between India and other regions. Neves mentioned that globally, bilateral traffic rights are not considered scarce, suggesting this perspective is unique to India.

Neves pointed out that India's aviation market can accommodate more aircraft and that it's up to India to decide when to allow more planes. "This market can accommodate more planes. And it is for India to decide when it wants more planes. We are going to have planes. If you don't want to place it here, I'm going to place it somewhere else. They can fly. It's not like a power plant. So, the market is there. If not India, somewhere else," he added.

Global Supply Chain Challenges

The global aviation sector faces supply chain disruptions, especially post-pandemic, causing delays in aircraft deliveries as airlines seek fleet expansion to meet passenger demand growth. Neves noted that many countries face slot constraints but emphasised India's advantage with its growing number of airports.

India boasts over 160 operational airports, with more set to commence operations soon. Neves believes this makes it an opportune time for discussions on enhancing seat entitlements in India. He also highlighted that Indian carriers account for nearly 70% of international traffic growth, which he views as a positive sign of their progress.

Etihad's Commitment to India

For Etihad Airways, India remains a crucial market, contributing about 20% of the airline's available seat kilometres (ASK) capacity in the region. Neves stressed the importance of maintaining a balance in traffic rights globally and acknowledged India's significant role in Etihad's strategic plans.

Neves remarked on the global nature of traffic rights, stating that countries like Germany and Canada also have such agreements in place. "While emphasising that there should be a balance, Neves said India is not the only place in the world that has traffic rights. Everywhere in the world, Germany, Canada... we have traffic rights," he noted.

The discussion around India's aviation sector highlights its potential for growth and the need for strategic decisions regarding bilateral flying rights and infrastructure development.

With inputs from PTI