Air services pact with Australia revised

A revised air services agreement between India and Australia, aimed at designating as many airlines as the two nations wished for, was approved by the Cabinet a day ahead of Australian Premier John Howard's visit.

The agreement, revised during bilateral civil aviation consultations in September 2004, will cause opening up of the sky between the two nations, enhancing the number of air services to a significant extent.

Announcing this after the Cabinet meeting today, Parliamentary Affairs Minister PR Dasmunshi said under the new agreement, both countries would have "the right to designate as many airlines as they wish".

The designated airlines of each side will mount agreed number of services and on agreed routes between the two countries as decided from time to time.

The agreement would terminate after one year of the date of receipt of notice by the other party, unless the notice was withdrawn by mutual consent of the parties before the end of this period, he said.

The revised agreement, the minister said, signified an important landmark in civil aviation relations between India and Australia and had the potential to spur greater trade, investment, tourism and cultural exchange between the two nations.

Howard, who is arriving here tomorrow, would also be visiting Mumbai and Chennai during his stay from March 5-8.

Howard also ruled out a uranium deal with India in the wake of the historic Indo-US nuclear deal. "We're certainly not going to suddenly change our policy just because the Indians and the Americans have reached an agreement," Howard told reporters as he left for a four-day visit to India.

Howard, who last visited India in 2000, will be accompanied by a 20-strong business delegation, including leaders from Australia's top companies.

The Australian leader will meet President APJ Kalam, Prime Minister Manmohan Singh, UPA Chairperson Sonia Gandhi and various cabinet ministers.

He said the main focus of his trip would be to build trade ties, business links and deepen the "strategic relationship" between the two countries.

"India is an increasingly influential global and regional player whose interests converge with Australia's. The discussions I will have while in India will add impetus to our growing strategic relationship," Howard said.

"During my visit it is anticipated that a number of agreements will be signed in various fields, including trade, defence, science and air services," he said.

He will also attempt to attract more Indian students to Australian universities during his visit. "Australia is a very attractive place for overseas students," he said.