The Hindu Business Line : India, US to review air services pact in Jan: Patel

INDIA and the US will meet in January next year to review the existing air services bilateral agreement, the Minister for Civil Aviation, Mr Praful Patel, said here on Wednesday.

"There are several issues that will be looked at during the meeting, which we are hopeful will be held sometime in January next year. There is a need to increase the scope of the bilateral agreement," Mr Patel said.

While there are no restrictions on the number of flights, which can be operated between India and the US, the agreement restricts the operations to four cities in the US to which airlines of India can fly into. Currently, airlines from India are allowed to operate flights to cities such as Chicago, Los Angeles and New York. Air India has already expressed a desire to operate to more cities in the US.

When questioned on whether the Chairman of the Virgin group, Sir Richard Branson, would be allowed to invest in an airline in India, Mr Patel said that this was something, which would have to be considered. "There is no confusion. Airlines are not allowed to invest either directly or indirectly in the aviation sector. But an individual, in his own capacity, can invest. However, let the investment proposal of Mr Branson come and then we will take a view," Mr Patel said.

During a visit to India late last week, the Virgin Chairman had indicated an interest in investing in the domestic aviation sector. The Minister said that not only was the Government making attempts to strengthen the state-owned airlines, but it would also allow private airlines to operate to more destinations around the globe.

Officials, however, said that the Government was likely to specify that only those private sector domestic airlines that have operated for at least five years would be considered for more global operations.