'The only pressure we feel is lack of access to the Indian market'

Tim Clarke, President of Emirates Airline is both happy and sad. Sitting at the Taj Boston, Clarke explained why the recent increase in seats between India and Dubai was just not enough.

Excerpts from an edited interview:

You met Business Line two years ago and complained about how India had these huge airports but was not allowing users in. Have you seen any change since?

To be quite honest, not a lot. Indian civil aviation started to move with great gusto in 2004. The aviation sector was recognised as being one of the catalysts and facilitators for a rapidly growing India.

There was a renaissance in thinking with regard to the role of aviation and how the aviation sector would be the primary integrator for the expansionist engagement plans of the Indian government of the day.

I am not quite sure why. I am not up-to-speed on the nature of Indian politics. But there was a time, and that probably came to an end about 2008-09, when other forces came into play. As far as we are concerned there seems to be reticence to take what was a major thrust in aviation to the next level.

But the Indian Government has opened up — FDI is now allowed in domestic airlines. Emirates has still not shown any interest. Why is that?

If in India you could ring-fence your investment with the way you go about running a business the way you want to run it, then we might have been interested.

We did this in Sri Lanka. The politics was very difficult. There was a civil war going on and there were all sorts of forces at play which made it very difficult even though we did ring-fence the contract with the Government.

We had an agreement which protected us from all sorts of influences that the Government may have sought to impose on us if we had not had the shareholder agreement in place. The Indian Government cannot do that. If you want to go in with foreign investment to any entity in India, you do it under Indian rules.

Are you saying that the Indian Government’s liberalisation is falling short of expectations?

Basically. This is Emirates’ view. If the huge impetus of 2004 had continued, then I think it would have been a far more fertile ground for foreign investment to get involved in carriers.

People have got a little bit jaundiced in their approach because of what happened to Kingfisher. If Vijay Mallya could not make it work, it sends you clear messages.

Today you have the likes of IndiGo, which seem to be making money; I can’t speak for SpiceJet. Jet has had a tough time, and now it has got Etihad money so maybe that will help.

Singapore Airlines and Etihad, which compete with you globally, have stakes in domestic airlines in India. Does this put pressure on you?

To be honest the only pressure we feel is lack of access to the Indian market.

But Dubai just got an additional 11,000 seats?

It is six years since we had a seat. (This time) We had asked for 25,000-30,000 seats. Do not forget that they gave Etihad 33,000 seats.

In 2008 when the bilateral was exchanged between India and Dubai there was a quantum jump?

Of course. But then you have to look at the base line. Roll back to 2002-03 when we had nothing. Yes, there was steep increase, but from what base? In 1985 when I first did the bilateral negotiations, there were 2,250 seats in each direction a week. It stepped up very slowly.

Look at what British Airways, Lufthansa and KLM got. These were steep increases of 100s of per cent for years. You have to place it in the aero-political landscape because there was the opening of flood gates. Ours was part of that. It was not considered in isolation.

The Indian Government deals with so many airlines. How can it look only at Emirates’ needs?

I speak as one but I am not alone in what I am saying. In November I was in London and Willie Walsh (CEO Virgin) got up and unsolicitedly lambasted the Indian Government for spending so much time and money protecting Air India.

He said if they did not do this and opened multiple points to foreign carriers who want to go there, then it is good for India. That is the drum I will bang till I leave the business.

What about operating the Airbus 380 into India?

I would love to fly the 380 to India but we cannot do it. I do not have enough seats which will allow me to maintain the same level of frequency of service.

What about expanding in India through code share agreements or other such steps?

I never say never to anything. We have done code shares with Jet, but now that has tied up with Etihad that may be compromising a little bit.

Two-three years ago I approached Air India and told them that they were not using their quota of seats. If Air India and Emirates were to come together, perhaps we could help you.

Could you explain come together?

Code shares, things like that, so that Air India could get access without having to put metal. But I am afraid it fell on stony ground.

(This correspondent is in Boston at the invitation of Emirates Airlines . )

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