India and China are set to sign a new air-services agreement (ASA), paving the way for the first direct flights by their national airlines between the two countries.
The agreement is expected to be signed on 21 May during a visit to Chinese capital Beijing by an Indian delegation of senior aviation-ministry officials.
India's last ASA with China, which did not include direct flights, expired in 1988. Attempts to restart direct air links have ended in failure. The two countries fought a brief border war in 1962, since when relations have been strained. Ethiopian Airlines is the only international airline which operates direct flights with a service between Mumbai in India, and Beijing, China.
The agreement will identify the carriers allowed to make direct flights, the frequency and capacity, and the possibilities of fifth/sixth-freedom passenger traffic.
Indian officials say that direct flights between India and China can only be profitable if airlines are allowed to carry fifth-freedom traffic from Hong Kong, Singapore or Bangkok to China. Air India says that it is also looking at a plan to use Mumbai as a hub for European and US traffic to China.
Source: Flight International
