Revising UAE air service pact will hurt Indian airlines, spike fares: CAPA

Move could lead to aero-political dispute; clubbing separate agreements into one and capping number of seats could also see spike in airfares

The Indian government's plan to revise air service agreement with UAE will constrain growth of Indian carriers and could lead to an aeropolitical dispute, aviation consultancy CAPA said today.

India-West Asia segment accounted for half of India's international air traffic in pre-Covid times. UAE is the largest market within West Asia, with around 60 per cent of traffic flow to and from the region.

India has separate air service agreements with Dubai, Abu Dhabi, Ras Al Khaimah and Sharjah. A media report today said the civil aviation ministry is planning to merge it into a single agreement and cap the