US, UK skies open up for airlines

Restrictions lifted on number of flights and destinations that carriers can operate.

The skies have opened up for Indian carriers in the US and the UK with the government liberalising the air services agreement with the two countries.

The Cabinet today cleared the bilateral air services agreement with the US, which removed the restrictions on the number of flights and destinations that carriers from both the countries can operate and fly to. Currently Indian carriers are allowed to fly only to four US cities "" New York, Newark, Los Angeles and San Francisco.

The bilateral agreement, to be signed by US Transportation Secretary Norman Y Mineta and Civil Aviation minister Praful Patel, tomorrow, also allows Indian private carriers like Jet Airways and Air Sahara to start operations to the US.

The civil aviation ministry had recently gave an in-principle permission to Jet Airways to operate three flights to New York from Mumbai via Brussels. The private carriers are expected to start operations to the US by October-November 2005.

The agreement with the UK, signed today, means that Indian carriers can now operate 56 flights from Delhi and Mumbai to London. On all other routes, the carriers can have any number of flights.

At present, private carriers are allowed 9 flights to London. The move is also expected to lead to a huge dip in the air fares on the India-UK route.

For example, on the India-Singapore route, private Indian carriers like Air Sahara have slashed fares to as low as RS 10, 000 from the existing Rs 16, 000.

Besides, state-run carriers Indian Airlines and Air India also wanted to start additional services on the India-UK route. Aviation industry sources pointed out that with the increase in the number of seats, fares on this busy sector would drop.

This is the first time in nearly two decades that there has been any significant increase in air services between India and the UK.

As part of the agreement between the two governments, in the winter of 2005, the number of flights will go up to 42 from the present 12. In the summer of 2006, the number will grow to 49. It will be 56 in the winter of 2006.

In addition, there can be 14 flights a week from the UK to Bangalore and Chennai and 7 flights a week from that country to any other city in India.

Indian private carriers said this move would give them great operational freedom and that they could now look at operating more flights on the route.

"We want more services on the UK route as this will result in better operations. We want to make use of this to the maximum," said an executive with a private Indian carrier.