Taking lead from Crown Prince's visit, India to hike Saudi Arabia's flying rights by 40%: Report

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India is planning to hike Saudi Arabia's flying rights quota in the country by 40 percent from April 1, according to a report in The Economic Times.

The move will make the oil-rich nation the only country within a 5,000-km flying distance from India to have its quota increased by the Modi  government. India has earlier rejected requests for an increase in flying rights by other countries like Dubai, Qatar, China, Singapore and  Malaysia.

Moneycontrol could not independently verify the report.

The news comes days after Saudi Crown Prince Mohammed bin Salman visited India. During his visit, he announced plans to invest $100 billion in India's infrastructure sector. Salman also backed India against Pakistan at the recent Organisation of Islamic Cooperation meet.

Read: Saudi Arabia sees $100 bn investment opportunity in India: Crown Prince Mohammed bin Salman

India's decision to increase Saudi Arabia's flying rights quota may be driven by the incentives provided by the Gulf country. Saudi Arabia has unilaterally allowed Indian carriers to add as many flights as they want to Dammam.

"The External Affairs Ministry insisted on implementing the increase in quota on the back of various incentives provided by Saudi Arabia," an official aware of the matter told the newspaper.

The MEA is said to have asked the Aviation Ministry to consider the fact that Saudi Arabia allows Air India to fly to Israel using its airspace, and that the national carrier is the only airline that is allowed this facility, the official added.

Currently, flights between the two countries are governed by air services agreements -- also called bilateral flying rights.

As per the new aviation policy, no country within 5,000 km flying distance from India will be allowed any extra seats unless Indian carriers exhaust 80 percent of the flying rights quota. In the case of Saudi Arabia, the utilisation by Indian carriers is still about 74 percent (barring Dammam), but the aviation ministry expects it to cross 80 percent by April.