Dubai-based Emirates is seeking to increase the number of seats the airline offers from 54,200 seats a week into the country to over one lakh. Recently, Abu Dhabi-based Etihad Airways secured a three-fold increase in traffic rights for Abu Dhabi, piggybacking on its deal with Jet Airways. Highlighting its future strategy in India, Emirates President Tim Clark spoke to Business Line on a host of issues on the sidelines of the 69th annual general meeting of the IATA (International Air Transport Association) in Cape Town.
After the Jet-Etihad deal, will you be asking for more seats from India?
We asked for more seats four years ago. Irrespective of what happened with Jet and Etihad, our request predated theirs. With all our flights being full, we tried to bring the A-380. But the Indian Government didn’t allow it. We had to work within the seats allocated to us on the basis of frequencies. We have asked them for some more.
What would be your strategy to counter the competition after the Jet-Etihad deal?
The (aviation) market is like a big cake, which is growing all the time. What Etihad has done in its own way, successfully, is to get a piece of that cake. But at least three quarters of the cake is still there uneaten. The India market continues to grow. So why would you not let Indian travellers, many of whom travel two or three times a month to Dubai, get on our planes? It has always baffled me. Air India keeps getting thrown up at us. We can’t inhibit the growth of Air India. I used to fly in Air India in the 1960s. It was the first time that I sat in a Boeing 707 jet aircraft in my life. Air India was a wonderful carrier then. But where is it now?
It had the opportunity that we have all had. The airline should have been one of the largest airlines in the world, considering the way the market has gone. When I came to the Gulf in 1975, Air India was there. And after 38 years, there is not much of a difference (with Air India). The Jet-Etihad deal is just small fry. This is a commercial agreement which unleashes the potential of India. And it’s just the tip of the iceberg. But from Emirates’ point of view, I am already running full aircraft. What Jet-Etihad has done is just try and meet the demands of the Indian community. Why would you stifle that?
Are you looking at partnering with any Indian carrier?
I have never said no. Of course, we have looked at this. But our experience with Sri Lankan Airlines, when we sold the 44 per cent stake back to them, drew down a lot of time of the management. So, going forward, we would want to firewall our arrangement. We wouldn’t want any kind of interference. The Indian landscape is a multi-faceted one – there is the political aspect and the commercial aspect. It is not easy to operate in that environment. But if you were to firewall the aviation entities and let them grow unencumbered, then it would be a good thing. But it’s not easy.
Delhi airport, today, is a great world-class hub with its three runways and great big terminal. But there is nobody in it. Why would you encourage growth and then stop the airlines (from expanding)? All this because Air India is not making money! Is that our fault?
The foreign carrier community must also make their own way with the Indian Government to allow access to Indian cities. For instance, in South Indian cities such as Kozhikode, Thiruvananthapuram and Kochi, our flights are completely full all the time. There is a very large Indian community travelling between Dubai and these regions. But there is not enough capacity. It is up to the Indian Government to make up their mind. What we offer is - not to be the national carrier of India, which we are accused of being - but a good product to the Indian community at competitive prices and connectivity to many regions across the globe where Air India or other Indian carriers don’t fly.
How much does India contribute to your total turnover? How much do you get from ancillary revenues?
It is not over eight per cent and it is declining. We are not at the moment heavily into the ancillary revenue segment. Other carriers are charging for excess baggage and seat selection. But we are not thinking about doing this.
nivedita.ganguly@thehindu.co.in