The UK and India have reached agreement on a bilateral deal that will double the number of permitted services between the two countries, as well as adding new destinations.
The agreement adds 21 weekly services for the carriers of each country by winter 2005 on top of the 19 services allowed by the current deal. The extra flights will be phased in, with seven extra services for each country in each of the next three flying seasons starting from winter 2004.
Airlines have previously complained about the restrictive UK-India bilateral. Virgin Atlantic Airways threatened back in 2002 to pull its then twice-weekly Delhi service, complaining that it was not viable unless it was allowed extra frequencies. It was subsequently given an extra weekly service.
Virgin says it plans to add new flights to Delhi and is also looking at Mumbai. The carrier's chairman, Sir Richard Branson, says: "For a long time, India has needed the benefits that additional air services bring. Half of the people flying from London to Delhi and Mumbai each year are forced to do so via third countries."
British Airways, which currently uses all of the 19 services a week allowed under the bilateral, has indicated it would like to fly to Bangalore and Hyderabad. These two cities and Kochi are now permitted destinations for UK carriers under the new deal. Previously they were restricted to Delhi, Mumbai, Chennai and Kolkata.
Virgin Atlantic currently has to operate through a codeshare agreement with Air India, and has made clear it believes it should be given priority when it comes to handing out slots.
Star Alliance member bmi has also indicated its interest in flying to India, and if there is more demand for services than are allowed under the new agreement, the UK's Civil Aviation Authority will hold a scarce bilateral hearing to decide the slot allocation.
Air India currently flies 12 times a week between the two countries, with fifth-freedom rights to pick up passengers for onward travel to the USA on 10 of these. The agreement sees an expansion of these fifth-freedom rights.
Under guidelines drawn up by the European Commission, the UK is not meant to restrict bilateral negotiations to nationally owned carriers. However, Brussels has indicated it will not crack down on deals that are seen to promote the liberalisation of the aviation sector.
The deal was signed in London in mid-September, and stems from a meeting in June between UK transport minister Alistair Darling and Indian civil aviation minister Praful Patel in London.
Source: Airline Business
