Adani Airports urges India to relax seat caps on foreign airlines

By Abhijith Ganapavaram

HYDERABAD, Jan 28 (Reuters) - Adani Airports on Wednesday urged India to ease limits on how many seats foreign airlines can sell on flights to and from the country, saying the curbs are holding back its ambition to become a global aviation hub.

The limits, part of bilateral air service agreements, are designed to protect domestic airlines, but have long been a source of frustration for overseas carriers. Dubai's Emirates, for example, has said demand was much higher than the weekly seat caps under the India–UAE bilateral agreement.

"In the short term, growth in Indian aviation is constrained by bilateral agreements," Adani Airports Chief Executive Arun Bansal said during a panel discussion at an Indian air show in Hyderabad.

"For India to become a hub, we need an open skies approach."

An Indian government spokesperson did not immediately respond to a request for comment.

India is the world's fastest-growing aviation market. Adani Airports, part of billionaire Gautam Adani's group, operates eight airports, and has plans to bid for 11 more as part of its $11 billion expansion strategy.

Indian airlines, including market leader IndiGo INGL.NS, have backed the government's decision to maintain seat caps, arguing that a rapid liberalisation of bilateral deals could undermine domestic carriers that are still expanding their fleets.