The Hindu Business Line : India, US sign air services pact — 'More flights, lower fares on cards'

INDIA and the US on Thursday signed an Air Services Agreement that would result in more commercial flights, lower fares and stronger economic ties between the two countries. This new pact will replace the 1956 agreement, which, though quite liberal, had some restrictions on the points of call as well as capacity on certain routes.

Addressing newspersons after the signing ceremony, the Civil Aviation Minister, Mr Praful Patel, said that airlines would now be able to select routes and destinations based on consumer demand. "The new agreement will have no restrictions on the number of flights, offer flexibility in the number of destinations as well as bilateral code-sharing with domestic carriers." Designated airlines could operate flights on either or both directions, combine different flight numbers within one aircraft operation and transfer traffic from one of its aircraft to another.

Mr Norman Y. Mineta, US Secretary of Transportation, added, "This bilateral Open Skies agreement between India and the United States will stimulate new passenger and cargo services, new partnerships, innovations and lower prices - to the benefit of our countries, our economies, our businesses and our citizens."

Airlines will be able to provide non-stop flights connecting the two countries, which would result in reducing travel time. An estimated two million passengers travel between India and the US but none of the airlines operate non-stop flights. Only recently American airline, Continental announced the launch of a non-stop flight connecting Delhi and New York from November. The Open Skies agreement with the US is also likely to result in direct flights to not only New Delhi or Mumbai but also other cities such as Chennai, Hyderabad, Bangalore and Kolkata. Domestic airlines would also be able to reach out to other cities in the US besides New York, Newark, Chicago and Los Angeles.

Currently, Air India (AI) flies to these destinations while other carriers such as Indian Airlines (IA), Jet Airways and Air Sahara are planning to fly to US destinations by next year.

Later at a luncheon meeting organised by FICCI and the American Chamber of Commerce, Mr Mineta said that the US and India have agreed on the US-India Aviation Cooperation Programme. This envisages bringing the US Government and private sector together with the Indian Government and the aviation community to support initiatives such as technical assistance, jobs training and personnel exchanges.

Besides the Federal Aviation Administration, several organisations such as the Exim Bank, the US Trade and Development Administration and leading firms such as Boeing, Raytheon, General Electric, Pratt & Whitney, Bell Helicopters and Honeywell would play a leading role in the partnership.

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