flyadeal Launches Mumbai-Riyadh Service As Saudi Carriers Bet Big On India

As airlines from Middle East countries continue to focus on routes to India given the projected growth in traffic and passenger numbers, flyadeal, Saudia Group's fast-growing low-cost carrier and one of the largest low-cost airlines in the GCC, has launched its non-stop service between Mumbai and Riyadh. The new route marks the airline's second destination in India after Hyderabad.

Sanjiv Kapoor, Acting CEO, flyadeal, told NDTV, that despite the volatility, airspace closures and high fuel prices, airlines are betting on big growth on these routes.

"Fuel prices currently are double of what they were, but we still need to continue with our business plan, take informed decisions and continue to grow. We need to keep moving. The India expansion was part of the plan. We've slowed it down a little. We might have done this faster but we have no intent to not do it. We need to be thoughtful about our pricing and everything else, keeping in mind that India is a price-sensitive market," Kapoor told NDTV.

As the third-largest low-cost airline in the Middle East region, flyadeal looking at strengthening its presence in India. The airline is also looking at destinations like Lucknow, Calicut, Ahmedabad and Surat.

But there are challenges for foreign airlines to expand to fly to other cities in India.

"The bilaterals between Saudi Arabia and India have not been exhausted yet. In terms of the number of seats and the number of passengers, there is room for growth and it's not exhausted. That's a very positive thing. In terms of what is constrained it is the number of stations that you can fly to. It's limited on both sides. We are very keen, Saudi Arabia is very keen, to increase the number of stations," he said.

"Discussions have taken place between the two ministries and the ministers of both countries discussed this and there is desire on both sides to liberalise the bilaterals to allow more ports of call and we hope that happens soon," Kapoor added.