Cabinet approves changes in air service pacts

New Delhi, Oct 11 (UNI) The government today upgraded air service agreements with Denmark, Norway and Sweden to keep pace with developments in international civil aviation.

The initiative will spur greater trade, investment, tourism and cultural exchanges with these countries, said minister for information and broadcasting Priya Ranjan Dasmunshi after the cabinet meeting chaired by Prime Minister Manmohan Singh.

The cabinet approved amendments and insertion in existing air services agreements with Denmark, Norway and Sweden signed on December 19, 1995. During the last round of talks on November 29 and 30 last year, officials had agreed to modernise existing pacts by amending certain provisions.

The essential features of the amendments agreed to is: -- on capacity provisions, the requisite article has been amended by removing the section which required advance agreement between designated airlines about their operational details.

-- on tariffs, designated airlines are now free to decide the fares based on commercial considerations and are not required to file tariffs.

-- on aviation security, the concerned article has been re-drafted as per the model standard clause applicable in India.

-- a new article has been introduced with regard to safety provision which also is as per our model standard clause.

-- a new article has been introduced with regard to cooperative marketing arrangements which will enable designated airlines to operate code-share flights including third country code-share.

These amendments will come into force after the approval of respective governments and intimated through exchange of diplomatic notes. The ministry of civil aviation will monitor implementation of air service agreements.

UNI