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Apr 2008

Govt approves air services agreement with Mexico

     New Delhi: The Union Cabinet today approved the signing of an Air Services Agreement (ASA) between the Government of India and the Government of United Mexican States. The agreed text of the proposed ASA between the two countries was initialed during bilateral civil aviation consultations held on January 10-11 this year in Mexico City. As per the proposed ASA, both countries shall 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. Both countries will follow the obligations in accordance with their rights and obligations under International law to protect the security of civil aviation against acts of unlawful interference. The new arrangement signifies an important landmark in the civil aviation relations between India and the United Mexican States, and will pave the way for the establishment of air links between both countries. The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion and sale of air services. Either country, on the basis of reciprocity, shall exempt a designated airline of the other country, to the extent possible under its laws, from custom duties, excise taxes, inspection fees and other national duties and charges on specific items (aircraft, fuel lubricating oil, spare parts of aircraft/engine etc.) introduced into the territory of the other country, retained or taken on board by the designated airline and which are intended for use in operating the agreed services. The designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes, while taking into account the interest of the other country's airlines so as not to unduly affect the services which the latter offers to provide under the proposed Agreement. The designated airline will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations. For any tariff to become effected and marketed, the prior approval of the Aeronautical authorities of both parties shall be obtained. The designated airlines of both parties shall not be required to agree on the fares to be applied.
-Apr 11, 2008