Air India, Jet Airways, JetLite and the Deccan-Kingfisher combine will soon get more access to European destinations. A liberal aviation pact between India and the European Union is on the cards, which will enable this as well as give EU carriers better access to India. In a way, the pact will work like an ‘open skies’ agreement between India and the EU.
According to civil aviation ministry sources, Indian carriers will get to operate a virtually unrestricted number of flights to European destinations like London, Paris and Frankfurt. They can also enter into code-share pacts with European carriers without seeking government approval.
On a reciprocal basis, European carriers will also get similar market access in India and be able to ink pacts with Indian counterparts without going through elaborate government clearances.
The proposed horizontal aviation agreement between the two sides provides far more flexibility than the air service arrangements being pursued by India with individual EU members.
“Germany and the UK have already agreed to the terms of the proposed agreement. We are expected to negotiate with other member states as well shortly. The agreement is expected to be signed during the PM’s visit to France in September this year,” a civil aviation ministry official said. The EU has similar agreements with China and the US. Currently, 26 bilateral air services agreements exist between EU members and India.
The proposed pact between the sides would remove nationality restrictions (from the EU side) in the bilateral air services agreements between EU members and India. This would allow any designated airline from the member states and India to operate flights to each other’s side where a bilateral agreement with India exists and traffic rights are available.
The agreement will also pave the way for routing flexibility to European carriers which means designated carriers of different countries may use each other’s traffic rights.
For example, in case of French designated carriers exhausting all its bilateral traffic rights with India it can still operate additional services using traffic rights of the Netherlands. But this comes with a rider that the French airline would have to operate from the country whose rights are being used.
Spr773 From India, joined Jun 2008, 155 posts, RR: 0 Reply 1, posted (5 years 4 months 3 weeks 23 hours ago) and read 1614 times:
Would that be on the lines of the "Open Skies" of the US/EU ? Just like we see that AF flights originating in London and BA flights from Paris to continental US ?
If yes then it would mean a huge loss to the local airlines who would have to compete with the likes of LH / AF / KLM.
On the flip side , Indian carriers will have get their act together as they would be facing more competition
LAXDESI From United States of America, joined May 2005, 5085 posts, RR: 48 Reply 3, posted (5 years 4 months 3 weeks 10 hours ago) and read 1439 times:
Quoting LeftWing (Reply 2): What about the ATF tax the Indian airlines pay...EU airlines will tanker fuel into India...
The GOI should allow airlines to collect ATF taxes back on international flights by deeming them as exports. Otherwise, Indian carriers will be at a perpetual disadvantage against foreign carriers from SE Asia and ME. I wonder if these foreign carriers fly into India with extra fuel for the return trip. Does anyone know?
Quoting Spr773 (Reply 1): Would that be on the lines of the "Open Skies" of the US/EU ? Just like we see that AF flights originating in London and BA flights from Paris to continental US ?
LAXDESI From United States of America, joined May 2005, 5085 posts, RR: 48 Reply 6, posted (5 years 4 months 2 weeks 6 days 5 hours ago) and read 1258 times:
Quoting Blrsea (Reply 5): This is already done. Indian airlines operating international flights don't have to pay tax. Indian carriers get the same rate as international carriers too for their intl ops.
I am confused. The why are the Indian carriers complaining about higher fuel prices at Indian airports relative to DXB?