India and Nepal have signed a new air services agreement that virtually opens up their skies to all of their airlines.
"Both the countries shall now be entitled to designate any number of airlines for operation of mutually agreed services, for which the respective country shall grant appropriate authorisation and permission," says India's civil aviation ministry.
The only restrictions are on the designated Nepali carriers, which will be allowed to operate not exceeding 10,000 seats per week to and from Mumbai and Bangalore, and not exceeding 15,000 seats per week to and from New Delhi. These restrictions, however, will lapse from 1 January 2011.
Airlines from both countries now have fifth freedom traffic rights to and from any point within the South Asian Association for Regional Cooperation, a regional body that also includes Afghanistan, Bhutan, Bangladesh, Pakistan, Sri Lanka and the Maldives.
They also have the nod to exercise beyond fifth freedom traffic rights to and from destinations other than the points in the SAARC Region on not more than seven flights per week.
The designated airlines can also operate unlimited all-cargo services between each country, and this includes codesharing agreements.
"Both countries share historical, political and economical relationship which has been mutually beneficial for both the countries. The growth of the air services of the two countries has greatly facilitated enhancement of this relationship," says the ministry. "This ASA has the potential to spur greater trade investment, tourism and strengthening the cultural exchange between the two countries besides bringing it in tune with the developments in the international civil aviation scenario."
Source: Air Transport Intelligence news
