The report said policymakers in New Delhi and Abu Dhabi should ‘seize this moment’ to implement a phased liberalisation roadmap.

The recommendation is to adopt a strategic, phased approach to open up the skies, and do so with ‘urgency’ ensuring that both countries stay ahead of demand, capitalise on mutual opportunities, and jointly secure their position as global aviation leaders.

To capture these gains, the report suggests a phased liberalisation of India–UAE air services.

Key policy measures include:

Phased Capacity Expansion: Given India’s robust growth trajectory, UAE-India flight capacity can be doubled over five years, with annually phased liberalisation of 20 percent. This steady expansion will meet rising demand while avoiding market shocks, leading to a 20-percent reduction in airfares. A controlled pace prevents sudden overcapacity and guards against traffic diversion to third-country hubs, ensuring sustainable growth for airlines in both countries.  

Strengthen Hubs and Regional Connectivity:

Invest in and enhance major Indian airports (Delhi, Mumbai, Bengaluru) as efficient international hubs in partnership with UAE carriers. Synchronise flight schedules to improve connections. Simultaneously, phase in UAE airline access to tier-2 and tier-3 Indian cities in a calibrated manner. This approach boosts connectivity for smaller cities while allowing Indian domestic carriers to partner (through codeshare/interlining) for last-mile connectivity, so regional airports grow alongside major hubs.

Liberalising air services

The report added liberalising air services would generate substantial welfare gains for Indian travellers. A phased 5-percent annual increase in bilateral seat capacity is projected to add over US$152 million in consumer surplus by 2028 (directly adding to Indian travellers’ savings). A more ambitious doubling of capacity over five years could yield an economic benefit exceeding US$1.05 billion to Indian consumers. Thus, phased liberalisation up to 100 percent can generate savings for Indian consumers exceeding US$1.05 billion.

IndiGo currently offers IndiGoStretch on all flights between Delhi–Mumbai and Delhi–Bengaluru. From April 15, 2025, this product will also be available on all flights between Delhi and Chennai. Alongside the offering on domestic network, IndiGoStretch is offered to the customers on Delhi – Bangkok route. By the end of this year, 45 aircraft equipped with IndiGoStretch will be inducted into the fleet.

IndiGoStretch offer a baggage allowance starting from 30 kg (two bags) in check-in and one bag of 12 kg in the cabin.

Star Air is a progressive full-service regional carrier which is ‘connecting real India’ from their main base at Kempegowda International Airport in Bengaluru, Karnataka.

Star Air currently operates a modern fleet of 9 Embraer aircraft, and are one of only three domestic airlines in India offering both business and economy cabins. Star Air plans to operate a fleet of 25 aircraft by 2027 and enhance connectivity across Tier 2 and Tier 3 cities in India. With new aircraft soon to commence operations, Star Air will target underserved markets.

Anil Rajvani, the GM of Revenue Management at Star Air said: “With such progressive growth plans, Star Air needed an established revenue management partner to help them maximise passenger revenue day in and day out. Star Air choose Maxamation and the Aviator Revenue Management system as the best fit for their needs.

“Right from the start the Maxamation team has been fast and professional to work with and have supported us 100% along the way.  The onsite training was centred on our specific needs and left us in a great position to maximise flight revenue. Aviator itself is exactly the automated and user-friendly revenue management system we were looking for. Most importantly, we are already seeing the revenue grow.”

Peter Brewer, CEO of Maxamation added: “Star Air are Maxamation’s first customer in India and we are delighted to partner with them. Star Air have an impressive regional model which we have seen work very well in other markets. Anil Rajvani and the Star Air team worked as close partners with our Maxamation team in Australia and in India to deliver the best outcome for the airline. We look forward to being part of the growing Star Air journey in the years ahead.”

SITA said the strategic move aims to redefine how airports function by seamlessly blending technology and interior design to create future-ready spaces. 

CCM is synonymous with world famous high-quality Italian design in the airport space. It works with leading architects and designers to create efficient, functional, memorable, and stylish traveller experiences. 

“This isn’t just about expanding airports,” said David Lavorel, CEO at SITA. “It’s about reimagining them. With CCM’s deep design and execution expertise, we’re transforming airports to maximise their existing footprint, optimise passenger flow, and create smarter, more flexible and valuable airport terminal environments that evolve with the changing needs of the industry.”

As the leader in passenger processing technology, SITA is at the forefront of managing airport space more efficiently. The industry’s transformation demands a new approach to space management, where traditional check-in counters are replaced with innovative designs that reflect modern travel habits. 

“Building efficient, tech-enabled environments is crucial for the future of travel. Airports are not just transit points; they mark a moment in a journey, no matter the destination. By integrating our expertise, we bring to life the airports of the future - architecture that is built on tech solutions and driven by efficiency to improve the overall travel experience for passengers and the operations of airport staff,” said David Lavorel.

The acquisition of CCM adds valuable design and customer advisory elements to SITA’s existing technology, reinforcing its commitment to leading the future of air travel. 

Sergio Colella, President, Europe at SITA, added: “The market needs a fundamental shift— where technology and design work together to make airports smarter in using their space for more capacity and with flexibility to support the next generation of travel. That’s why we’re bringing CCM into the SITA family. By combining our technology and experience in airport operations with their deep understanding of design and space optimisation, we are bringing to the market a unique ‘technology by design’ capability and end-to-end integration from design to operations, all in harmony since the conception of the idea.”

Globally, air cargo total demand, measured in cargo tonne-kilometers (CTK), declined by 0.1% compared to February 2024 levels (+0.4% for international operations). This marks the first decline since mid-2023.

Capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 0.4% compared to February 2024 (+1.1% for international operations).

“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary—a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce. Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs,” said Willie Walsh, IATA’s director general.

February Regional Performance

African airlines saw a 5.7% year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6% year-on-year. 

Middle Eastern carriers saw an 11.9% year-on-year decrease in demand growth for air cargo in February, the slowest among the regions. Capacity decreased by 4.0% year-on-year.

Asia-Pacific airlines saw 5.1% year-on-year demand growth for air cargo in February. Capacity increased by 2.7% year-on-year.

North American carriers saw a 0.4% year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5% year-on-year.

European carriers saw a 0.1% year-on-year decrease in demand growth for air cargo in February. Capacity decreased 0.2% year-on-year.

Latin American carriers saw 6.0% year-on-year demand growth for air cargo in February, the strongest growth among the regions. Capacity increased 7.6% year-on-year.

The proposed FTO will be a state-of-the-art flight school, designed to provide the high quality pilot training, combining cutting-edge infrastructure with the latest advancements in aviation technology.  

Under the terms of the MoU, Vector Technorium will design and construct the entire FTO complex, including advanced hangars and custom-designed hangar doors. advanced.

Melstarr’s FTO will offer a comprehensive training curriculum tailored to equip aspiring pilots with the necessary skills to meet the evolving demands of the global aviation industry.

The facility will be equipped with state-of-the-art flight simulators, modern classrooms, and dedicated maintenance facilities to provide a holistic training experience.  

Capt. Tarun Kashyap, executive director and chief operating officer of of Melstarr Aviations Tech Private Limited, said:  “This partnership reflects our commitment to developing a world-class flight training institution that will set a benchmark in the industry. Vector Technorium’s deep expertise in aviation infrastructure gives us the confidence that the project will be executed to the highest standards.”

Anirrban Batacharrya, director of Vector Technorium, said: "At Vector Technorium, we are dedicated to delivering innovative design-build solutions for the aviation sector. This partnership represents a step towards strengthening India’s aviation infrastructure and providing aspiring pilots with a world-class training environment.”

Under the agreement, the two MROs will engage in joint commercial and operational aspects, allowing an extended market reach to facilitate greater capacity for airlines and operators.

Fraser Currie, chief executive officer of Joramco, said: “Joramco is excited to partner up with Tim Aerospace. Our collaboration will allow us to extend services to the larger regional and international customers, while offering more capacity to existing airlines.”

On the other hand, Adam Voss, chief executive officer of Tim Aerospace, said: “Tim Aerospace has entered into a cooperation agreement with Joramco, a leading MRO provider with a significant regional presence. This partnership will allow Tim Aerospace to leverage Joramco’s expertise and infrastructure while accelerating its establishment in key markets.”

As an example of its humanitarian aid efforts, Etihad supported St. Joseph’s Orphanage in Colombo, a refuge for abandoned children. During a heartwarming ceremony, Etihad Airways officially inaugurated new dormitory, kitchen, and canteen facilities, significantly improving the living conditions of the 500 children residing there. The airline also provided essential resources, including amenity bags, school supplies, blankets, and clothing, ensuring the children had access to the items needed for their well-being and development.

“Rooted in Etihad’s core values of unity and community, these efforts reflect our ongoing commitment to bringing people together for a shared purpose. With a firm belief that unity is a catalyst for meaningful progress, Etihad continues to foster collaboration, empower communities, and create a lasting impact wherever we operate." said Dr. Nadia Bastaki, Chief People & Corporate Affairs Officer at Etihad Airways.

“Etihad’s CSR efforts in Sri Lanka are part of our global commitment to making a positive impact. Last year, the airline’s community and volunteer programmes reached over 290,000 beneficiaries. As the UAE declares 2025 the Year of Community, we are proud to extend our efforts beyond the UAE, supporting communities across our global network,” Dr. Nadia added.

Etihad employees from a wide range of divisions, including airport services, network operations, e-commerce, financial reporting, operations, guest experience, and procurement, came together with a shared purpose, embodying the airline’s core value of unity for a common cause. Working hand in hand with local engineering partners, they brought these impactful projects to life across Colombo and Kandy.

Reflecting the country’s growing influence in international travel and hospitality, India’s inbound and outbound offerings will be in focus during the forthcoming edition of Arabian Travel Market (ATM), which takes place from 28 April to 1 May at the Dubai World Trade Centre.

According to Future Market Insights, India's outbound tourism market is projected to reach USD55 billion by 2034, expanding at a Compound Annual Growth Rate (CAGR) of 11.4% over the next decade. This growth is primarily driven by increasing demand for international travel, particularly among millennials seeking diverse experiences abroad. Furthermore, research from STR suggests that India has increasingly become one of the most targeted source markets globally, with many destinations intensifying their efforts to attract Indian travellers.

In 2024, Dubai welcomed 3.14 million overnight visitors from South Asia, with India factoring predominantly, significantly contributing to the overall 18.72 million international visitors who made a trip to the city, representing a nine per cent year-on-year increase.

STR’s findings also reveal that hotel supply in India has increased by a CAGR of just over 3% in the past decade, with 114,000 new rooms added since 2014. Developer interest remains high, with hotel occupancy rates increasing in eight of the last ten years, reflecting sustained demand. 

This will be underscored by the country’s participation at ATM this year, which is expected to grow 41% year on year, driven by a strong presence from exhibitors such as the India Ministry of Tourism, airline carriers Air India and Air India Express, and an expanding representation from the regional tourism boards of Goa, Karnataka, Madhya Pradesh and Uttar Pradesh.

Danielle Curtis, exhibition director ME, Arabian Travel Market, said: “India’s larger showcase at ATM not only highlights the country’s rich and diverse travel offerings, from luxury experiences and wellness retreats to cultural destinations and adventure tourism, but serves as a crucial platform for global travel exchange, enabling the international travel industry to tap into this lucrative market.” 

The airline aims to serve 44 cities with its fleet of refurbished Boeing 777 and Airbus A380 aircraft by September 2025.

Emirates is enhancing its Boeing 777 services with an elevated onboard experience across the following destinations: Lisbon, Dublin, Hong Kong, the Maldives, Kolkata, Colombo, and Johannesburg and Cape Town.

Additionally, London Stansted will receive its second daily service with refreshed Boeing 777 interiors from June 1.