With the stake sale finally concluded, the Jet-Etihad combine will look forward to the civil aviation ministry?s decision on the proposal to increase bilateral seat entitlements between Abu Dhabi and India.

Before Wednesday?s deal, Jet had sought enhancing seat entitlements to Abu Dhabi to 54,000 seats a week, out of which Jet plans to utilise 42,000 seats a week in the next two years. Currently, Indian carriers have

entitlements of only 13,300 per week. The change will lead to 2.8 million Indian passengers a year flying to Abu Dhabi.

Higher entitlements will be a key positive for the Jet-Etihad combine. Jet plans on utilising ?fifth flying freedom rights? that will enable it to open routes like Kochi-Abu Dhabi-Kuwait, which starts from May 16. Sources said that Jet is also looking at similar routes across West Asia and the North African region with destinations like Najaf in Iraq, Cairo in Egypt, Beirut in Lebanon and Amman in Jordan ? all connected via Abu Dhabi.

?The proposal is a win-win for both as Jet Airways will be able to tap the air travel market of the prosperous Middle East-North Africa region without additional investments on fleet,? said Vikram Krishnan, partner at Dubai-based aviation consultancy firm Oliver Wyman. ?Etihad?s long-haul routes will benefit from additional traffic brought in by Jet and it will also have the option of expanding further with the 54,000 seats that Abu Dhabi is likely to get in return.?

Etihad, which has 40 wide-bodied planes, serves 86 international destinations from Abu Dhabi, including all major destinations. Jet, on the other hand, has only 23 wide-bodied planes and 10 out of its 20 international destinations are in West Asia.

The proposal to enhance seats to Abu Dhabi has attracted mixed reactions from the industry and policy makers. Civil aviation minister Ajit Singh said Wednesday that no final decision has been taken regarding the bilaterals yet and the ministry is still considering the proposal.

Critics of the proposal say more seats will severely damage India?s geographical advantage to become a global aviation hub.

?Airports Authority of India (AAI) and private airport operators have invested in modernising our gateway airports, which are by now well-equipped to handle transfer traffic on a large scale. The development of a hub at closer proximity will adversely impact further growth of these gateways as hubs,? Delhi airport operator GMR said.

GMR?s Delhi airport partner AAI, however, supports the enhancement of seats to Abu Dhabi as Jet Airways plans to utilise them by connecting from 23 Tier II cities. AAI chairman VP Agarwal said the proposal will help boost traffic from Tier II cities and help in healthy operations of airports in those cities.

Legislators, though, have expressed reservation at expanding seat entitlements. At a meeting of the Parliament?s standing committee on tourism, transport and culture last Thursday, members voiced concerns on Abu Dhabi getting increased access to India. Trinamool Congress MP Dinesh Trivedi has sent a letter to the prime minister seeking his immediate intervention and demanding suspension of flying rights talks with Abu Dhabi, said sources.

In a report last year, the aviation ministry had pointed to the problem of India?s international ?hub? shifting out. The report said that while Mumbai and Delhi had only 12% and 9% transit crowd out of the overall traffic, Dubai stood at 44%, Doha at 61% and Singapore at 25%. The report said 11.4 million out of 15 million passengers who flew in and out of India in 2011 did so via a hub outside India, mainly in the Middle East.

As per latest figures, 7.34 million passengers from India flew to Dubai in 2012 calendar year. Out of this, over 3 million flew onwards to other destinations around the world. Dubai?s rise to become India?s ?hub? for long-haul international travel was aided by former minister Praful Patel?s decision to increase the Emirates? seat entitlements to India from around 10,000 seats per week to 54,000 a week in one shot.

The biggest beneficiary was Emirates, which overtook Air India in carrying India?s international travelers. The Jet-Etihad deal combined with enhanced seat entitlements could dent AI?s international operations further.

?One can read between the lines and say that this deal will certainly funnel out traffic into Abu Dhabi from where Etihad will mount its flights to US and Europe at the cost of Air India,? said former director general of civil aviation Kanu Gohain.

Aviation industry expert Kapil Kaul said India rushes the decisions regarding bilateral seat entitlements and should come up with a National Aviation Plan to take such decisions in the national interest.

India is only two hours away from the Middle East and has a similar geographical advantage to develop into an airline hub for the region, pointed out former IATA director general and chief executive Giovanni Bisignani. Indian airlines till now have been unable to make full use of this advantage due to heavy losses, lack of funds and late development of airport infrastructure.

Foreign travel

* Giving Jet Airways? 42,000 seats a week to Abu Dhabi to damage India?s potential of having an aviation hub

* Jet likely to move one-third of global operations to Abu Dhabi, leaving little room for New Delhi to become a hub

* Smaller airports in Tier II cities would, however, benefit from increased movement of passengers

* Etihad will benefit as Jet would provide Indian passengers for its long-haul international routes

* The Jet-Etihad combine is also set to give stiff competition to Air India?s international operations

* Last rise in large bilateral seat entitlements has helped Emirates to fly largest number of Indians abroad