In September 2022, United Airlines and Emirates Airline announced plans to launch a partnership. While the execution left a bit to be desired (especially with mileage earning and redemption reciprocity), symbolically this was major, given the bad blood that previously existed between US and Gulf carriers. Well, there’s an update to this partnership, and it’s not good news.
In this post:
United can’t codeshare on Emirates flights to India
One of the main aspects of the partnership between Emirates and United is a codeshare agreement. The idea is that United could market select Emirates flights beyond Dubai, while Emirates could market select United flights beyond US gateways, as a way of splitting revenue.
This makes sense strategically, especially in light of the current Russian airspace restrictions. This partnership allows United to sell tickets to passengers to all kinds of airports in the Middle East, India, Africa, etc. Unfortunately it looks like that won’t be possible for one of the world’s most important aviation markets.
The Economic Times reports that the Indian government has refused permission for Emirates and United to codeshare on flights between Dubai and India. The justification is that existing traffic rights between the United Arab Emirates and India don’t allow for a codeshare agreement.
This is a major blow to the partnership, though it’s not the end of the world:
- There are still other destinations that can be covered with the codeshare agreement
- While a codeshare isn’t being allowed, an interline agreement is still there, and this could still generate incremental business between Dubai and India, especially with United now flying from Newark to Dubai
I’m not surprised to see this decision
The United States and India have an Open Skies agreement, meaning that airlines can offer unlimited capacity between the two countries, pending airport slots. Meanwhile the United Arab Emirates and India don’t have an Open Skies agreement, but rather have a bilateral agreement that greatly limits the capacity of Emirates and Etihad.
Not surprisingly, this is by design, and is intended to protect Indian carriers. After all, Gulf carriers have almost been the de facto “national” carriers of India for many years, given how many international travelers they’ve transported to and from India. With Indian aviation undergoing some major changes (particularly with Air India essentially being reinvented), the country is more protective of its home carriers than ever before.
Codeshares between the United Arab Emirates and India aren’t explicitly forbidden, but rather require approval from the government. I assume that Emirates and United figured they’d get approved, given that this wouldn’t actually lead to an increase in capacity between the two countries. Historically India has often granted this permission, but not this time.
I’m curious to see what this means for the partnership between Emirates and United. This doesn’t mean they have to cut ties, or anything, but it certainly limits the usefulness and depth of a potential relationship.
Bottom line
India has blocked the request of Emirates and United to have a codeshare agreement on flights between Dubai and India. The two airlines launched a partnership recently, and the single most important market for this is India. With no codeshares being allowed there, that greatly limits the usefulness of this relationship.
I can’t say I’m surprised to see this request denied, given the Indian government’s protectionist approach nowadays.
What do you make of the Emirates and United codeshare being blocked by India?
Great initiative by Indian government
I have a flight coming up from Mumbai to Newark via Dubai, on Emirates and United on a United ticket. Can you help me understand if it will impact me (cancelations or otherwise)?
Please attach a copy of both flight coupons or E ticket with ticket no
I will give my reply thanks
its time both Canada and USA banned Air India flights that overfly Russia.
If bilaterals between US and India as well as between India and UAE allow third party codeshare, then India cannot block codeshare agreement between United and Emirates. The most probable reason for blocking such an arrangement could be absence of third party codeshare clause in one or both the bilaterals
There's nothing at all preventing UA from publishing fares, just for example BNA-DEL and writing the fare rules BNA-EWR-DXB any UA flight / DXB-DEL any EK flight. It doesn't need to be a UA code to sell as a UA fare or on UA ticket stock.
They could write every single fare to India like that if they wanted to force either UA metal to India or UA/EK metal to DXB and EK code and EK metal to India.
If the DXB to India leg is on EK code, it is no longer "Fly America" eligible.
But sure, you can always sell an interline/SPA even without a signed strategic partnership.
Logical decision. Mystery how india let its whole aviation industry be high jacked by middle Eastern carriers.
The logical decision for the US would be to ban all flights that over fly Russian airspace
You've been posting this an awful lot, albeit under different aliases. Wonder what's your agenda. It's obvious that it has nothing to do with the topic of this article.
Just interesting, about 25 years ago, Emirates was a very small airline and United handled their ground operations at LHR. So there is some relationships.
(It also got me as UA 1K a C to F upgrade as C was oversold)
CO also had a codeshare relationship with EK@LGW through to the early '00s as well, so there's also that inherited legacy.
Can’t United still benefit from India through Star Alliance with Air India?
Time to ban Air India from using Russian airspace to the U.S.
This it’s getting ridiculous at this point
This is bad for North American NRIs especially Canadian passengers who shell out arm and a leg for flights to India
Why and how exactly? Oh it must be your lack of understanding of global politics and positioning.
Do you think successive US governments have been fools or that India is a US lackey? How will this stupidity benefit India exactly? Or do you think India is a US lackey like your European "partners" that will shoot itself in the foot for your benefit? It's amazing that there are still Americans who hold such an ignorant and outdated understanding of India.
This probably increases the odds that the US DOT bans all flights to or from the US from using Russian airspace, which will pretty much end Air India's flights to most of the USA (especially SFO and ORD), or make them uneconomical.
Ironically, United would probably prefer to partner more closely with Air India, its fellow Star Alliance member. But AI's domestic network is garbage and IndiGo totally dominates the Indian domestic market. Fingers crossed...
This probably increases the odds that the US DOT bans all flights to or from the US from using Russian airspace, which will pretty much end Air India's flights to most of the USA (especially SFO and ORD), or make them uneconomical.
Ironically, United would probably prefer to partner more closely with Air India, its fellow Star Alliance member. But AI's domestic network is garbage and IndiGo totally dominates the Indian domestic market. Fingers crossed that the new Tata ownership can turn AI around.
It'll probably have to partner with AI anyways, given UK is expected to merge with them
Would be really interesting to see the political ramifications from such a ban, the situation regarding AI173 is also pointing towards one...
Us airlines generally cannot codeshare on flights operated by foreign carriers that transit embargoed or banned airspace - so it is possible that codesharing w/ AI couldn't happen even if UA wanted it other than to NYC - which accomplishes nothing since UA can fly India to EWR.
The point of the EK/UA agreement is to weaken AI's position in the market - UA just needed to find a partner that has Open Skies. Strangely,...
Us airlines generally cannot codeshare on flights operated by foreign carriers that transit embargoed or banned airspace - so it is possible that codesharing w/ AI couldn't happen even if UA wanted it other than to NYC - which accomplishes nothing since UA can fly India to EWR.
The point of the EK/UA agreement is to weaken AI's position in the market - UA just needed to find a partner that has Open Skies. Strangely, the LH Group flies multiple fights per day to India and probably could add more but UA is more interested in a Middle East airline...?
I was moreover referring to codeshares in the domestic Indian market rather than direct US-India routes, given the lack of competition right now. Do have to agree about the EK agreement tho, AC actually has a codeshare agreement with LH Group for flights to India, and given UA and EK aren't even allowed to cooperate on that front, UA may end up signing a similar agreement with LH Group instead
Just a point of clarification. You say that the current bilateral agreement limits the capacity of Emirates and Etihad. That is not accurate. Etihad (and other Abu Dhabi designated carriers) have some dormant rights still. Furthermore, Indian carriers are also maxed out on capacity to Dubai. Finally, Indian carriers now have a significantly larger market share of O&D traffic between India-UAE than the UAE carriers do. The market has changed significantly in the last few...
Just a point of clarification. You say that the current bilateral agreement limits the capacity of Emirates and Etihad. That is not accurate. Etihad (and other Abu Dhabi designated carriers) have some dormant rights still. Furthermore, Indian carriers are also maxed out on capacity to Dubai. Finally, Indian carriers now have a significantly larger market share of O&D traffic between India-UAE than the UAE carriers do. The market has changed significantly in the last few years and the issue is less about protecting the Indian carriers than gaining more market access for them on reciprocal basis.
That is true that the current bilateral agreement limits the capacity (number of seats) that Emirates and Etihad can operate to India. Emirates has deployed all their allocated seats but Etihad has not deployed all of their seats which is why airlines based in Abu Dhabi are allowed to increase or launch new flights to India while those in Dubai cannot do so.
@Tiger - my point was that India is not unilaterally imposing restrictions. The limits apply to both sides by mutual agreement and the Indian side wants more access to Dubai as well, but that has not been forthcoming. India is not going to hand over additional rights unilaterally unless the interests of its own carriers are addressed as well.
Modi-ji ki sarkaar, hai hai
Modiji ki sarkar to Bharat ke sarkar hai, America ki nahi.
Didn’t know Sean was versed in Hindi. Anymore surprises that I should know off?
Sean is of Indian origin, wouldn’t be surprised if if knows other Indian languages besides Hindi.
Haha. Yep, I'm fluent enough in Hindi to even do TV interviews although I'm more comfortable in English obviously.
Garbage leader
@Sean, what's your favorite Hindi word? Mine starts with the writer of this blog's first name.