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Ashwini Phadnis

New Delhi, June 26

The high profitability of the route, growing business ties, and the constant movement of labour between India and the Gulf region is helping airlines from both sides to steadily increase the number of flights being operated, lower fares — and make money from the operations.

On the Bangalore-Dubai route, while Emirates is offering a return fare of Rs 15,100, on Kingfisher, a return fare costs around Rs 15,700.

On the other hand, a flight to the Gulf region is about 2-3 hours and the average fare is about Rs 12,000-14,000.

India-US flight is covered in about 17 hours with a fare of about Rs 40,000-45,000.

“Besides, the aircraft can return from a Gulf flight and be used to operate another flight the same day, thereby, generating more funds for the airline” said an airline executive.

Kingfisher Airlines became the newest entrant starting a daily flight between Bangalore and Chennai from Thursday, while FlyDubai, a Dubai-based low-cost airline will begin services to three cities here including Coimbatore from July 15.

FlyDubai, on the other hand has fares starting at Rs 4,700 including all taxes from Coimbatore to Dubai. The ticket price includes all taxes and one piece of hand baggage, weighing up to 10 kg a passenger.

The General Manager, India and Sri Lanka, Etihad Airways, Ms Neerja Bhatia, felt that the overall air traffic market for the Gulf region (to and from India) was improving steadily.

“There is a huge Indian expatriate population living in the UAE and an even a larger number of people keen to travel to the region for both business and pleasure,” said the FlyDubai Chief Executive Officer, Mr Ghaith Al Ghaith.

The Indian carriers are also happy about the opportunity to operate on this sector.

“The India-Gulf sector is one of the maximum yield generator from among the domestic and international routes operated by them,” a senior airline officer said.

Before the sector was opened to private sector from India, in late 2007, the Gulf region was the second most important revenue generator for Air India, logging revenues of Rs 1,591.04 crore during 2005-06 down from Rs 2,021.46 crore generated during the previous year.

The airlines from India, however, complain that the Gulf carriers while increasing flights are dumping fares into India, a move that helps them carry more passengers. This is denied by the Gulf carriers who point out that airfares are determined by the market.

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