In a rare show of unity, the chief executives of India's two largest airlines have voiced strong concerns about protecting domestic carriers' market share against potential increased access for foreign competitors.
IndiGo CEO Pieter Elbers and Air India CEO Campbell Wilson have both emphasized the need to safeguard Indian airlines' interests during ongoing bilateral aviation talks with other countries. Their comments come at a crucial time when several nations are seeking greater access to the rapidly growing Indian aviation market.
The Stakes for Indian Aviation
The Indian aviation sector is experiencing unprecedented growth, with domestic passenger traffic consistently hitting new records. This booming market has made India an attractive destination for international carriers seeking to expand their operations.
However, both airline leaders argue that Indian carriers have made significant investments in fleet expansion and infrastructure, and deserve protection to ensure these investments yield returns.
Balancing Growth and Protection
Pieter Elbers, heading the world's third-largest airline by market capitalization, stated that while international growth is important, it must not come at the expense of domestic carriers. "We should be very, very mindful and protective that whatever we built up in recent years in Indian aviation is something we need to cherish and protect," he emphasized.
Air India's Campbell Wilson echoed similar sentiments, highlighting that the airline has ordered 470 aircraft as part of its transformation strategy. "The government has been very supportive of the country's aviation sector and Air India's transformation," Wilson noted, while stressing the importance of maintaining this support.
The Bilateral Agreement Challenge
Bilateral air service agreements between countries determine how many flights airlines from each nation can operate to each other's territories. Several countries, including the United Arab Emirates, Qatar, and Turkey, have been pushing for increased flight rights to India.
The airline executives' concerns center around ensuring that any expansion of these agreements doesn't disproportionately benefit foreign carriers at the expense of Indian airlines that are still recovering from pandemic-related losses and investing heavily in expansion.
Looking Ahead
As India continues its journey to become the world's third-largest aviation market, the balance between protecting domestic interests and embracing global connectivity remains a delicate one. The unified stance from India's aviation leaders signals a new phase in the country's aviation policy discussions, where domestic carriers are taking a more assertive role in shaping their future.
