By Andy Sambidge
Report says airline's growth to four new Indian destinations worth $106m to economy
The expansion of Emirates Airline's operations in India would benefit the local economy by an extra $106m and would lead to the creation of more than 13,000 new jobs, a new study has said.
Access to Indian airports is limited by the fact that most nations have used up their allotted traffic rights to India but the report by the National Council of Applied Economic Research (NCAER) suggests expansion of an efficient civil aviation sector is important for India.
The study claimed that Emirates’ expansion to four additional points - Amritsar, Pune, Mangalore and Trichy - would have big benefits for the Indian economy.
It also said that Emirates has contributed a total of $596m to the Indian economy and directly employs 1,045 employees while supporting more than 72,000 jobs in India through its operations.
Andrew Parker, Emirates senior vice president of Public, Industry, International & Environmental Affairs, said: “Emirates is committed to further investment and growth in the Indian market with the deployment of the latest generation aircraft and launching new routes over the medium term."
He added: “India is a central pillar in Emirate’s global network, last year Emirates carried over 4.7 million passengers on its flights to Indian cities."
Emirates said last year that it saw great potential for its superjumbo A380 on Indian routes but current aviation regulations designed to protect national carrier Air India mean they cannot do so.
The study, sponsored by the Dubai airline, also showed that on the tourism front, Emirates has brought in 529,928 foreign tourists into the country in 2010-11, as a result of which, $1.153bn has been contributed to the economy.
It added that Emirates connects non-hub airports to a significant number of points in India which would otherwise not be directly linked to these airports.
Dr Shekhar Shah, director general, NCAER, said: “A well-managed civil aviation infrastructure and efficiently-run, competitive airlines are a must in today’s globalised world.
"The presence of such infrastructure and airlines in India can bring down transport and communication costs, promote commercial and cultural activity, create jobs, and ultimately unify people and markets.”
One line says all you need to know about this story - "The study, sponsored by the Dubai airline..."
Not the most independent of assessments! Maybe a fairer headline would be "Emirates makes case for Emirates' Indian expansion."
The same story was pulled in Canada & Australia where "studies" showed how Emirates helped the economy. Its really a thinly veiled plea to the government of those countries to allow Emirates to gain access to pretty much unlimited landing slots to justify their 120+ A380 orders.
I doubt very much however, if the India government says "no", that they are going to pull a stunt like they did in Canada. 190+ weekly flights to India is certainly a profitable route for EK, and should the government there retaliate by cancelling or cutting back slots for EK, someone literally will be burning the midnight oil at their offices trying to figure out a plan B
Does $106 million matter to India which is a trillion dollar economy? The recent news on 'Coal gate' suggest that India's government lost US$ 33 Billion potential revenue. We also know about 2 G case where in Government lost Billions in revenue. Off course additional flights to Indian cities are going to benefit the travelers based in Middle East, but National Council of Applied Economic Research (NCAER) should concentrate on burning issues rather than these small issues.
Dear Emirates Airlines do also let us know how much your airlines take away from the Indian economy....in terms of revenue on flights to and from India, losses which Indian carriers had to bear specifically on international flights..if you compare this amount with what emirates contributed to Indian economy that would be peanuts.