![]() Financial Daily from THE HINDU group of publications Tuesday, Jan 18, 2005 |
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Government
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Policy Logistics - Airlines `Indian carriers can operate beyond US under new pact' Our Bureau
Mr Praful Patel
New Delhi , Jan. 17 THE soon to be signed Indo-US bilateral air services agreement could provide the designated airlines of India the freedom of not only operating flights to as many cities in US as there is passenger demand for but also to onwards from the US to onwards destinations. Addressing a press conference, the Minister for Civil Aviation, Mr Praful Patel, said that the agreement provides for fifth freedom right to airlines from the two countries. The fifth freedom right allows airlines from either India or the US to operate flights not only to each other's countries but also onwards from there. "The air services agreement that has been agreed upon will provide more choices to passengers wanting to travel directly between India and the US. Besides, as connectivity increases prices will also come down. In the short and medium term, Indian carriers will have a head start. It will be a win-win situation for us," Mr Patel said. The earlier agreement between the US and India had several restrictions, including placing a cap on the number of cities to which airlines from India could operate. The broad contours of the new agreement were finalised during the recent visit of Mr Patel to Washington. At the meeting India did not agree to a request of the US for a "security audit." Officials said it was explained to the US side that India follows the International Civil Aviation Organisation (ICAO) norms on security and therefore there was no real need for a "security audit." Meanwhile, the Government has asked the two private sector airlines - Jet Airways and Air Sahara - as also Air India and Indian Airlines to submit their plans for launching more international operations by Tuesday. The move comes close on the heels of the Union Cabinet clearing a proposal allowing the private sector airlines to start operations to more international destinations. The Government plans to allocate more international routes to the airlines based on the basis of Available Seat Kilometre (ASKM) operated in the domestic sector during the last five years.
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