"U.S. Announces 'Open Skies' With India"

Sunday, January 16, 2005

U.S. Announces 'Open Skies' With India
The Associated Press


WASHINGTON - The United States and India have reached an open-skies aviation
agreement that will lead to more flights, lower fares and stronger economic
ties between the two countries, Transportation Secretary Norman Y. Mineta
announced Saturday.

The agreement comes after three days of negotiations between Mineta and
India's civil aviation minister, Praful Patel.

Mineta said the agreement means the two countries "will be closer than ever
before" and begins "a new era where American and Indian consumers, airlines
and economies can reap the rewards of cheaper flights, more choices and
faster air service."

He said the agreement will strengthen commercial aviation in a number of
ways, including more direct flights to serve the approximately 2 million
passengers a year traveling between the two countries.

The agreement allows airlines from both countries to select routes and
destinations based on consumer demand, providing for open routes, capacity,
frequencies, designations, and pricing as well as opportunities for
cooperative marketing arrangements.

That includes code-sharing with domestic Indian carriers to aid in making
reservations and giving a greater choice of flights.

The deal also allows all-cargo operators to operate in either country
without directly connecting to their homeland.

India and the United States are the world's two largest democracies and two
of world's fastest growing economies, Mineta noted in a statement.

He said trade between the two nations totaled $18 billion in 2003, a 13.5
percent increase from the previous year, and was growing at an even faster
pace in 2004, according to preliminary figures.

The provisions expected to provide the greatest economic benefit, like those
affecting routes and code-sharing, take effect immediately, the
Transportation Department said.

The entire agreement take effect once the deal is signed "in the near
future," the announcement said.

The new deal replaces an agreement signed in 1956 that placed restrictions
on the number of airlines that could fly between the two countries, cities
that could be served, the frequency of service and pricing.

India becomes the 67th bilateral U.S. Open Skies partner.


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