India and UAE have signed a bilateral agreement to increase four times the number of weekly airline seats available between India and Abu Dhabi. The number of seats available per week between India and Abu Dhabi has almost been quadrupled from existing capacity of 13,300 to 50,000. An agreement to this effect was signed between the Civil Aviation Ministries of India and UAE in Abu Dhabi yesterday.The new arrangement will be phased over a period of three years, until December 31, 2015.
The bilateral agreement on availability of seats was due after the entire capacity of 13,300 got exhausted. Many of the Indian air carriers such as Air India, Jet Airways, Indigo and Spice Jet had sought an increase in the number of seats available on India-UAE Sector. According to reports, Jet Airways alone has sought an increase in its capacity to 41,600 additional weekly seats to Abu Dhabi over the next three years.
The move comes close on the heels of Jet-Eitehad deal under which Jet Airways has agreed to sell 24 percent shares worth $379 million to Abu Dhabi based Eitehad Airways. Under the plan Etihad Airways and Jet Airways will gradually expand existing operations and introduce new routes between India and Abu Dhabi. Jet Airways will establish its Gulf hub in Abu Dhabi.