Making more noise does not make you right: IndiGo CEO Pieter Elbers

IndiGo CEO Pieter Elbers pushed back, emphasising that bilateral air service agreements are meant to be mutually beneficial

A day after Emirates President Tim Clark criticised restriction on air access for foreign airlines, IndiGo Chief Executive Officer (CEO) Pieter Elbers pushed back, stressing that bilateral air service agreements are meant to be mutually beneficial and making “more noise” doesn’t make one more right.

 

“First of all, it’s called a bilateral agreement, right? That means two sides have to agree on something. If one side makes more and more noise, it doesn’t mean you are more right,” Elbers said during a press conference at the annual general meeting at the International Air Transport Association (IATA) on Monday.

 

“It’s not that if one side says, ‘now we do it’ — that’s not how it works,” he added.

   

Without naming any specific country or region, Elbers noted that there have historically been several international markets where foreign airlines fully utilised their entitlements to fly into India, while Indian carriers did not. “There were a massive number of flights into India and no operations by Indian operators. So, for a government to say, ‘first let’s use the existing pool of traffic rights and then look at new ones,’ I think that’s a completely fair and balanced approach.”

 

His comments come amid ongoing demands from Gulf carriers like Emirates and Qatar Airways for increased flying rights to and from India. The UAE has been urging India to revise the 2014 bilateral agreement, which caps seat entitlements at 66,504 per week for each side. Emirates has already exhausted its allocation and has repeatedly voiced frustration over not being allowed to add more flights. 

 

India, however, has been reluctant to expand these rights, as West Asian hubs like Dubai and Doha primarily channel Indian traffic onward to North America and Europe. At the same time, Indian carriers are steadily inducting widebody aircraft and ramping up their non-stop flight operations to those long-haul destinations.

 

Elbers pointed out that India has revised bilateral agreements with several countries in recent times. “I think the government of India has stepped forward and made a couple of new air service agreements with different countries in different parts of the world,” he said, on the perception that India has been inflexible.

 

IATA Director General Willie Walsh on Monday said that this challenge on flying rights is not unique to India. He acknowledged the country’s rapid growth in domestic aviation and noted that India’s fleet of widebody aircraft – previously less than 50 – is finally expanding. “As we see the expansion of Indian carriers into new markets, there will have to be a corresponding change to the approach for access.” 

 

Over the past two years, India has actively expanded its international aviation network by signing or updating bilateral air service agreements with several countries. In February 2023, India increased capacity entitlements for Russian carriers, allowing them to operate up to 64 weekly flights and removing route restrictions. Additionally, an air services agreement with Guyana was signed in April 2023 to facilitate direct connectivity. In May 2023, India and South Korea agreed to allow non-scheduled all-cargo operations with flexible freedom rights on agreed routes. In May 2024, India and the UK expanded their bilateral air service agreement, increasing weekly flights between London and Indian cities from 56 to 70 to meet rising travel demand.

 

Emirates President Tim Clark on Sunday said that India’s stance on air access could hurt its economic interests. “Not doing that (increasing bilateral rights) will only have you shoot yourself in the foot in the end,” Clark said, also acknowledging that India may have strategic reasons for its current policy.

 

Air India CEO Campbell Wilson had last year said that giving more rights to countries like the UAE would be like “pulling the rug out” from under Indian airlines, which have placed orders for over 1,000 new aircraft.