India, UAE to sign new Air Services Agreement
On 27th Novermber, the Union Cabinet of India gave its approval for signing of a revised Air Services between India and United Arab Emirates (UAE). This agreement will supersede the existing Air Services Agreement (ASA) signed on 21st March 1989 between the two countries. The present ASA is based on the modern International Civil Aviation Organisation (ICAO) template.
A press release issued by the Indian Ministry of Civil Aviation listed the following as some of the main features of the proposed ASA:
- Both countries will be entitled to designate any number of airlines for operation of mutually agreed services for which the respective country shall grant appropriate authorization and permission.
- Either country may revoke, suspend and limit the operating authorization or the technical permission of an airline designated by the other country if specified conditions are not upheld.
- Both countries will follow the obligations to protect the security of civil aviation against acts of unlawful interference.
- The designated airline of either party may enter into cooperative marketing arrangements like code share etc. or commercial arrangements.
- The designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes.
- The designated airlines will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations. The designated airlines of both the countries shall not be required to agree on the fares to be applied. However, each Party shall have the right to intervene so as to; (a) prevent tariffs whose application constitutes anti-competitive behaviour which has or is likely to have the effect of crippling a competitor or excluding a competitor from a route; (b) protect consensus from tariffs that are excessive or restrictive due to the abuse of a dominant position; and (c) protect airlines from tariffs that are predatory or artificially low.
The agreement will be signed on behalf of the two countries after approval by the respective Governments. Implementation will be watched and reported by the Ministry of Civil Aviation.