Dubai Airport CEO: Direct Traffic to India Market is Growing

Emirates is the largest foreign airline in terms of international network from India. Among other foreign carriers, it offers the highest number of seats in the Indian market. Emirates and other UAE-based carriers are known for carrying transiting passengers from India. But slowly, this demographic is changing.

In an interview with the Hindu Business Line, the CEO of Dubai Airport shared that the direct traffic between Dubai and India has increased, while the percentage of transiting passengers has witnessed a dip.

Dubai Airport: Direct Traffic to India Increasing

Paul Griffiths is the CEO of Dubai Airports. In an interview with HBL, he said that before the COVID-19 pandemic, 60 percent of the traffic from India used to transit to other regions like Europe, Africa, or the USA. The remaining 40% used to be the direct traffic. But now, this demographic has changed.

Post-pandemic, when airlines resumed operations to India, Dubai Airport witnessed a change in market dynamics. Now, 70% of the traffic from Indian cities is direct, and the remaining 30% transit onwards to their final destination.

In summary, transit passengers decreased from 60% to 30%. Direct traffic increased from 40% to 70%.

There are various reasons for this drop. Airlines like IndiGo and Air India have increased their international presence in the non-stop international market from India. Earlier, if a passenger wanted to travel from India to Almaty, Tbilisi, Tashkent, Nairobi, etc, his best option was to use one of the three Middle Eastern hubs. But now, Indian airlines have included these destinations in their non-stop networks.

In coming years, as the international network of Indian carriers grows, the number of Indian passengers transiting from Gulf hubs will continue to decrease.

Want to Increase Presence in India

Dubai Airport operator wants to expand its India portfolio. At present, airlines from UAE and India connect Dubai to 23 Indian cities. For a long time, both countries have been strong trade partners and will continue to have good connections.

Airlines like Air India, IndiGo, and Air India Express are some of the biggest customers for Dubai Airport. Hence, it is looking to further expand into the Indian market. There is enough capacity to grow.

However, airlines are limited because of bilateral constraints. Carriers from both sides have fully exhausted their bilateral quotas as a result of which, nobody can expand in this market. Dubai Airports CEO said that if we get more flying rights to India, it would be beneficial for both countries.

Even the Emirates President, Sir Tim Clark shares the same thoughts. According to him, Indian aviation and economy are booming. In such a period, holding the capacity is not the best idea. Clark said that this can prove to be detrimental to the Indian economy.

Are India & Saudia Hubs Danger For Dubai?

UAE is a country located in between two future hubs. On the east is India, which is aiming to convert its major airports like Delhi, Mumbai, and Bengaluru into hub airports. On the west is Saudi Arabia, which is eyeing to convert Riyadh into a hub airport.

Paul Griffiths believes that instead of dangering the position of Dubai Airport, these hubs will put the Gulf region in a stronger position to develop tourism potential. He welcomed competition and capacity increase. In any sector, when the competition increases, the consumer is the first beneficiary.

Paul lauded the enormous tourism potential of Saudi Arabia. He added that famous events like the Football World Cup in the Gulf region helped in boosting tourism. For example when Qatar hosted the FIFA World Cup 2022, more than 4.5 lakh fans traveled via Dubai World Central Airport (DWC).

The Origin and Destination (O&D)/direct traffic to and from Dubai is increasing. When considering the economic multiplier effect, the contribution of this P2P traffic to Dubai is more than enough.

Enhancing Passenger Experience

Talking about the recent heavy rains in Dubai, Griffiths said that the airport recovered very quickly from the flooding. The rainwater was quickly emptied. The contingency plan worked really well. However, the connectivity to and from the airport was challenging during that time. Many passengers had issues in reaching the airport. To improve this, various infrastructure upgrades are underway to improve the city drainage system.

In the coming time, you will see new innovations at Dubai Airport. To enhance customer experience, the airport is utilizing technology. It is working to streamline the passenger flow throughout the airport.

Talking about sustainability, the airport is exploring various options to reduce its carbon footprint. It is looking to use solar energy for operations and assessing the possibility of replacing the ground automobiles at Dubai Airport with vehicles using nonhydrocarbon fuel. Paul added that we want to get as close to carbon neutral as possible.

Conclusion

Dubai Airport operator wants to increase its India portfolio. It is in favor of the Indian government allowing more bilateral flying rights to carriers. Hubs in India and Saudi Arabia will increase competition, which is welcome, both to Dubai Airports as well as passengers. The direct traffic to Dubai Airport is increasing.

What do you think about these comments from the Dubai Airport CEO? Discuss in the comment section.