United States, India Sign Open Skies Aviation Agreement

Released by the Department of Transportation

More flights, lower fares and stronger economic ties will be the result of a new Open Skies aviation agreement between India and the United States, U.S. Secretary of Transportation Norman Y. Mineta said today during a signing ceremony with Indian Civil Aviation Minister Praful Patel in the Indian capital.

“As Secretary of State Rice noted during her visit to India last month, the Bush Administration’s position is clear: America is committed to helping India to become a major world power in the 21st Century. A strong Indian aviation system is a core component of reaching that goal,” Secretary Mineta said. “This agreement will stimulate new passenger and cargo services, new partnerships, innovation, and lower prices – to the benefit of our countries, our economies, our businesses, and our citizens.”

The agreement is already resulting in increased air services between the two countries, the Secretary added. Delta Air Lines has announced new daily service between New York and Chennai while Northwest Airlines plans new flights between Minneapolis and Bangalore. More recently, Continental Airlines announced a new flight between Newark and New Delhi that will be the first regularly scheduled nonstop service between the U.S. and India. The Secretary also said he expects Indian carriers to follow soon with new service between the two nations.

The new accord replaces an antiquated agreement signed in 1956 that placed restrictions on services between the two countries, including limits on cities that could be served and restrictions on pricing. The Open Skies agreement provides for open routes, capacity, frequencies, designations, and pricing, as well as opportunities for cooperative marketing arrangements, including bilateral code-sharing with domestic Indian carriers. The deal also allows all-cargo carriers to operate in either country without directly connecting to their homeland.

With this agreement, the United States now has Open Skies relationships with 67 aviation partners. Previous Open Skies agreements have led to new and increased passenger and cargo services, and better, lower-priced and more competitive services, Secretary Mineta said.

The signings took place during the Secretary’s 10-day, four-country transportation and trade visit to Asia, which also includes stops in Japan, Thailand and Hong Kong.

DOT 60-05