Air India is starting a new daily flight from Dubai to Visakhapatnam later this month, a senior airline official in the Gulf said.

Beginning March 25, the flight will be part of an upgraded fleet of aircraft flying to South Indian destinations that have been converted from 145-seater to 175-seater carriers, Abhay Pathak, Air India's regional manager Gulf, West Asia and Africa, said. 

Speaking to PTI on the sidelines of an agency award function in Abu Dhabi, Pathak said the airline's services in the region have been improving.

"Compared to last year, we have registered a growth in revenue of 25 per cent which is commendable considering the state of the industry in India and across the world," Pathak said adding that a total of 18 Indian destinations are being serviced from Dubai.

Pathak also said that a lack of hub in India so far has not helped matters.

"Most airlines in the Gulf region are creating a hub. Delhi is now emerging as a hub which is making seamless connection to Southeast Asia possible. The biggest challenge for us is to enhance revenue when there are so many players in the market," he said.

For decades Air India has been operating in the Gulf region which is home to an estimated 6 million Indian workers and Indo-Gulf trade exceeds USD 100 billion annually.

Pathak said the Gulf region is very vibrant and is taking on Europe and the US markets.

He also said even though the picture looks gloomy, it is the potential for growth that keeps them going.