New Delhi: India and the US yesterday signed an Air Services Agreement that would result in more commercial flights, lower fares and stronger economic ties between the two countries. This new pact will replace the 1956 agreement, which had some restrictions on the points of call as well as capacity on certain routes.

Addressing newspersons after the signing ceremony, the civil aviation minister, Praful Patel, said that airlines would now be able to select routes and destinations based on consumer demand. "The new agreement will have no restrictions on the number of flights, offer flexibility in the number of destinations as well as bilateral code-sharing with domestic carriers." Designated airlines could operate flights on either or both directions, combine different flight numbers within one aircraft operation and transfer traffic from one of its aircraft to another.

Norman Y Mineta, US secretary of transportation, added, "This bilateral Open Skies agreement between India and the United States will stimulate new passenger and cargo services, new partnerships, innovations and lower prices - to the benefit of our countries, our economies, our businesses and our citizens."