New India-Maldives aviation pact does not restrict number of carriers
19 Sep 2008
The cabinet has approved a new air services agreement between India and Maldives, which permits any number of airlines to operate between the two countries.
The new pact replaces a 19-year-old agreement that allowed a single carrier from either country.
According to information and broadcasting minister Priya Ranjan Dasmunsi, the revised agreement will increase the potential to spur greater trade, investment, tourism and cultural exchange between the two countries.
Maldives is a popular tourist destination for Indians, and is also popular with Indian film makers. In-bound tourism for India attracts a number of tourists from the region, including Maldives.
The new pact says that either country could impose reasonable user charges on the airlines of the other country, and is free to decide tariffs based on commercial considerations. The designated airline of either party may enter into cooperative marketing arrangements, as the operating or marketing airline with any airline.