Indian carriers should be strengthened for long-haul flights: Eco Survey

Indian carriers should be "strengthened" so that they can provide "adequate" long-haul flights from the country, the Economic Survey for 2023-24 stated on Monday. However, it did not clarify what measures the government should take in this regard.

"A large proportion of Indian international traffic for the long haul goes through connectivity hubs in the Middle East and Southeast Asia," it noted.

A significant portion—over 70 per cent—of passengers flying on Emirates, Etihad, and Qatar Airways flights connected to India utilised the airlines' hubs in Dubai, Abu Dhabi, and Doha as transit points for travel between India and third countries in February 2024, according to aviation analytics firm Cirium's data reviewed by Business Standard.

These Middle Eastern carriers have been asking India to increase the bilateral rights so that they can operate more flights to and from India. This matter has divided Indian carriers. Air India believes that granting more bilateral rights to certain Gulf countries will impede the growth of its long-haul and ultra long-haul flight operations to places such as North America and Europe.

SpiceJet agrees with Air India as it believes that the Indian government should focus on building major Indian airports as hubs. However, two other major carriers—IndiGo and Akasa Air—have stated that any decision regarding this matter should be taken after a holistic analysis.

The survey said: "There is also a need to provide adequate long-haul connectivity from India by strengthening Indian airlines."

It mentioned that initiatives such as the international aviation hub strategy and engagement with global aviation bodies signal India's intent to emerge as a key player in the global aviation landscape.

"For India to take a leadership position in aviation, focus is required on improving the efficiency and viability of airlines while ensuring environmental sustainability," it noted.