Indian airports are costly, says Air Arabia Chief Adel Abdullah Ali

Indian airports are expensive and the government must take steps to rationalise existing policies, says Adel Abdullah Ali, Group Chief Executive of Air Arabia. The head of the Sharjah-based airline tells Business Today that the central government must address certain issues to increase passenger traffic and help the domestic aviation industry grow.

"Costs of labour and resources are lower in India. But the costs at the airports are high compared to the international average," says Ali. "The whole world is excited about the new leadership in India. Through open sky policy and revision of costs at airport, India could improve on the number of fliers."

The low-fare carrier, Air Arabia, will complete 10 years of operations in India in March 2015. It operates 112 flights to the country every week, flying directly from its hub in Sharjah to 13 destinations across India. Since it largely focuses on connecting cities other than metros, it has higher connectivity than Emirates Airlines, which operates to and from 10 Indian cities. Air Arabia offers 18,000 seats a week to India and is growing at 17 per cent annually.

"We are always looking for growth in India. But we have not been able to grow in the last four years," says Ali. The airline had been seeking to build more capacity and new routes in India for the past three years, but has, so far, failed to convince the Indian government. Seat allocation and new routes are decided by the governments of India and the UAE. "Air Arabia could operate at better costs in India and passengers will benefit from it," says Ali.

"We listen to our customers and work according to their interests. Our strategy is growing in niche markets. We have got a flexible business model that can change according to the market movement," he says.  The airline's success is due to its ruthless cost-management practice. "We believe in better utilisation for quick turnaround," Ali signs off.