‘Open skies with nations over 5,000 km away will discourage regional players’

Ashwini Phadnis Updated - January 20, 2018 at 06:13 PM.

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Even as Al Akbar Baker, Group Chief Executive Officer, Qatar Airways, refuses to comment on whether his airline will be allowed to operate more flights to India after Prime Minister Narendra Modi visits Qatar later this week, he points out that between two friends there will be trade and there will be favours. He adds that Qatar did a very big favour to India by reducing their energy costs.

Edited excerpts from an exclusive interview to Hindu BusinessLine.  

The Indian Government is looking to have open skies with countries that are over 5,000 km away. Your comments?

Answer: This is wrong because 60 per cent of the population lives within this radius. Most of the Indian diaspora lives within this (radius). So, basically, you are encouraging people beyond this distance (5,000 km) to come. And none of the airlines beyond this six hours (about the distance from which the Indian Government’s plans of limiting the open skies) are interested in coming.  

The biggest American carrier withdrew (from India). What is the point? You (Indian Government) are encouraging people beyond who are not interested. And discouraging people (airlines) from this region from serving your people.

In real terms, it seems you want to say you are giving open skies, but at the same time you want to say we are not giving open skies.

Have you taken this up …

At the aviation summit in Hyderabad where the Union Minister was present I mentioned this and I was endorsed by several other Chief Executive Officers ….. of course, foreign (airline) CEOs.

That is people who are affected by the rule?

Yes.

How will you address this if it comes about?

It is very difficult. I am not the Government of India. I have to respect whatever decision the Indian Government makes. But this is an honest suggestion as a friend of India that this is not conducive to India’s economic growth.

India is an economic giant but unfortunately that potential is not being properly used. India has the highest growth rate. Are the grassroots people benefitting? No. Because once you open up and you encourage tourism, which an airline does, once you increase trade, you create more jobs.

Prime Minister Modi wants the growth to reach every Indian not just a certain sector. This can only happen if you open up.

When the previous Government opened up by giving rights to airlines a decade ago, did you measure how much tourism grew? It grew because of that (opening up). It did not grow because you built more hotels. It grew because airlines started bringing in more frequencies. More people came to India.

Do you think this will come up when Prime Minister Modi visits Doha?

No. His visit is a return visit because His Highness visited India and he was also the first Muslim leader to congratulate the PM on his victory. The PM is returning this and, of course, there is a lot of political and economic relationship between India and Qatar. Aviation is not all about this relationship.

But it is a major issue because Qatar also waived several thousands of crores of rupees which India had to pay as penalty?

India is a friend of Qatar and Qatar is a friend of India. Between two friends there will be trade and there will be favours. Qatar did a very big favour to India by reducing their energy costs.

Is the return favour allowing Qatar Airways …

I do not want to pre-empt any discussion because I will not be privy to any discussions between his Highness and the Indian Prime Minister.

But you are hopeful?  

I am always hopeful. I am always optimistic.

(This correspondent is in Dublin at the invitation of the International Air Transport Authority)

Published on June 2, 2016 05:51