PM's directive on India-Abu Dhabi air services agreement

The Prime Minister had last month directed that the India-Abu Dhabi air services agreement (ASA) should not be operationalised till it was discussed in the Union Cabinet.
"In the interest of wider consultations and greater transparency, the Prime Minister directed that the matter may be brought to the Cabinet for a decision before operationalising any agreements that may be arrived at by the government with the other party," according to a Prime Minister's Office note of June 13.
The PMO had raised concerns that although the MEA and the Minister of Commerce support the enhanacement of seats, DEA had reservations, also airlines and airports were opposed to this enhancement due to diversion of Europe and North Amercia-bound traffic to Abu Dhabi.

It had also raised concerns that if an Abu Dhabi-based airline acquires Jet Airways, this entity would control the bulk of the seats in this route and there would be a possibility of similar requests from other countries.
The note said Civil Aviation Minister Ajit Singh had said these concerns were taken into account while arriving at a consensus.