Flydubai refunds passengers due to deferred launch

FlyDubai, the low-cost airline floated by the Al-Maktoum royal family of Dubai recently, has started re-funding passengers after being forced to defer its India plans with government clearances not coming through. The cold shoulder from civil aviation authorities comes amid concerns that FlyDubai’s cut-throat fares could hit the Middle East operations of Air India Express, the budget airline of the bleeding national carrier. The airline had sought permission for flights to Chandigarh, Coimbatore and Lucknow from mid-July onwards. FlyDubai was offering fares as low as Rs 4,700, including taxes, on the Dubai-Lucknow sector. Other destinations, including Goa, were likely to be added subsequently.

A senior government official said none of the initial destinations sought by FlyDubai figured in the existing ‘points of call’ in the MoU signed between India and UAE last year. He, however, said the three cities were part of the ‘note verbale’ exchanged by the two countries. "The three cities Chandigarh, Coimbatore and Lucknow were part of 'note verbale' exchange and had to be agreed later as additional points of call. Also, these new points of call agreed were to have seat entitlements within the overall existing entitlements," he said. Simply put, FlyDubai’s connections to these proposed points of call have to be a part of the existing seat entitlements for UAE carriers, and not additional capacities created. UAE carriers like Emirates, Etihad and Air Arabia have 54,200 seat entitlements weekly to 10 Indian destinations currently.