Govt for more open sky deals

"The prime minister's proposal at the recent India-Asean summit would herald such bilaterals with other countries. The government was aware of the demands of various countries and airlines, and we would go in for a comprehensive open bilateral policy," Rudy said on the sidelines of a EU-India civil aviation safety and security conference. He, however, said the economic impact on the country's aviation sector would be analysed before committing to any such policy.

Rudy said: "Open sky is like the WTO. It is most desirable but we have to protect our economic interests as well." Rudy agreed that the government had been following a 'restrictive and protective' bilateral policy.

Terming the move with Asean as the 'beginning of a commitment' to an open sky policy, Rudy said the agreement would revolutionise aviation, trade and tourism in the country. He added that the state-owned carriers Indian Airlines and Air-India would have to be prepared to face competition.

"We cannot keep on protecting IA and A-I at the cost of the economy. They have to compete. We are there to support them," Rudy said. The civil aviation ministry recently held meetings with the tourism and the external affairs ministries to draw up a new liberal bilateral policy. One of the proposals being considered was the phasing out of the commercial agreements and the royalty arrangements.

The government had offered a limited open sky to the European and the US carriers last winter, which did not evoke an enthusiastic response.