Setting off a diplomatic row, Kuwait has threatened to stop all flights to India from July 1 alleging that New Delhi is going back on commitments in the air bilateral agreement between both countries. Coming just weeks after both sides held talks on the issue, a rattled South Block has asked the Civil Aviation Ministry for an explanation with all details.

At the heart of the problem is Kuwait’s first private low-cost carrier Jazeera Airways, which wants to operate most of its flights via Dubai under fifth freedom intermediate rights enshrined in the agreement (these refer to the right to pick up traffic to and from a third country, in this case UAE). Already, 10 of its 13 flights to and from India are routed via Dubai, its second hub after Kuwait City, threatening the market for Indian and Air India Express.

To cash in on the heavy traffic in the India-UAE sector, Kuwait wants a 50% increase in Jazeera’s flights to and from India which the Ministry hasn’t cleared. Reason: this will hit national carriers.

Jazeera’s fares range from Rs 4000 to 12,000 on the Mumbai-Dubai sector with better facilities for a low-cost carrier. Air India Express, on the other hand, has fares around Rs 7000 and above. So sensitive are Gulf rights for India that the Cabinet, while allowing private carriers to fly abroad, reserved this sector exclusively for national carriers.

While, technically, the bilateral understanding does not prevent Jazeera from flying via Dubai, the Ministry feels this is against the “spirit” of the agreement. Diplomatic efforts are on to calm Kuwaiti sentiments and bring matters to the negotiating table. National Security Advisor M K Narayanan is said to be keen on resolving the matter at the earliest.