India has sought four seats for its carriers against every extra seat it allows Dubai-based airlines to operate to the country, according to people with knowledge of the matter.
The demand is said to be unprecedented as international aviation trade is typically a bilateral process, based on the reciprocal exchange of rights by states.
Under the bilateral air service agreement inked between the United Arab Emirates (UAE) and India in January 2014, airlines of both nations are allowed to operate a total of 66,000 seats per week between Dubai and 15 Indian cities.
Both Indian and UAE airlines such as Emirates and Flydubai have exhausted this quota, leaving no scope for any increase in flights.
The UAE had asked the Ministry of Civil Aviation to raise the number of seats for Dubai by another 50,000.
A senior official said the government wanted to create a more favourable position for Indian airlines on international routes.