Akasa Air Partners with Etihad Airways to Expand Global Reach through Codeshare Agreement

Akasa Air, the Indian low-cost airline, has taken a significant step forward by entering into a codeshare partnership with Etihad Airways, the national airline of the United Arab Emirates.

This collaboration will enable Etihad to sell tickets for Akasa Air's flights, thereby enhancing the connectivity and reach of Akasa Air, especially to international travelers.

This codeshare partnership comes at a crucial moment when the Indian aviation sector is divided over whether the government should grant additional bilateral rights to airlines from West Asian nations.

The development highlights the ongoing debates about air traffic rights, with some Indian carriers concerned about the implications of allowing foreign airlines to increase their presence in India.

What is a Codeshare Partnership?

A codeshare agreement is a business arrangement where two airlines share the same flight, with one airline operating the flight while the other markets and sells seats on it. This partnership benefits both airlines by providing their passengers with more options for international travel. Akasa Air’s collaboration with Etihad will help the airline expand its network and offer more international routes for Indian travelers.

Bilateral Rights and the Growing Debate in India

Bilateral air rights refer to the agreements between two countries that determine the number of flights, routes, and frequencies airlines from both nations can operate. The recent discussion around granting more bilateral rights to Gulf carriers, such as Etihad, Emirates, and Qatar Airways, has sparked a division within India’s aviation industry.

While some airlines, including Akasa Air and IndiGo, believe that the government should evaluate the issue comprehensively, others, like Air India and SpiceJet, oppose increasing bilateral rights for foreign carriers. They argue that the focus should be on building major Indian airports as international hubs before allowing more flights from Gulf airlines.

Impact of the Codeshare Partnership

This codeshare deal will initially take effect in March or April next year, with Akasa Air enhancing its operations at Abu Dhabi Airport. Currently, Akasa operates a daily flight on the Mumbai-Abu Dhabi route. The new partnership will extend this to include daily flights from Ahmedabad and Bengaluru to Abu Dhabi, starting next summer.

With Etihad's support, Akasa Air hopes to expand its international footprint while intensifying its presence in the lucrative Abu Dhabi market. However, as industry experts suggest, the partnership could also pave the way for Akasa to secure additional rights under the existing bilateral air services agreement between India and the UAE.

Airlines and the Bilateral Rights Debate

The dispute over granting additional bilateral rights to Gulf carriers has been ongoing, with major players like Etihad, Emirates, and Qatar Airways pushing for increased capacity on routes between India and the Middle East. They argue that more flights would enhance connectivity and benefit passengers.

However, Air India’s CEO, Campbell Wilson, has voiced concerns that granting more bilateral rights could hinder the growth of Indian airlines, particularly in the long-haul and ultra-long-haul segments to North America and Europe. In June 2024, Wilson highlighted that Indian carriers had committed to purchasing over 1,000 aircraft, worth more than $100 billion.

He stressed that if the Indian government were to approve additional rights for Gulf carriers, it could disrupt the economic viability of these investments, ultimately affecting India’s ability to grow its aviation infrastructure and compete on the global stage.

A Critical Turning Point for Akasa Air

As Akasa Air embarks on its partnership with Etihad, the airline is well-positioned to enhance its service offerings and expand its reach. The codeshare agreement is an important milestone in the airline's journey and could lead to further developments as it strengthens its global network.

For now, the focus remains on how this collaboration plays out in terms of securing additional rights and opening up new markets for Akasa Air. As the airline industry continues to evolve, Akasa’s strategic moves will play a pivotal role in shaping its future success.