US and India announce ''Open Skies'' pact

Washington: The US and India have reached an agreement on opening their skies setting the scene for revolutionising air travel between the two countries. The agreement, announced by US transportation secretary Norman Mineta, will lead to cheaper airfares and more direct flights between the two nations.

"The agreement means the two countries will be closer than ever before. It begins a new era, where consumers, airlines and economies can reap the rewards of cheaper flights, more choices and faster air service," said Mineta. The agreement will strengthen commercial aviation in a number of ways, including more direct flights to serve the approximately two million passengers traveling between the two countries every year.

The agreement allows airlines from both countries to select routes and destinations based on consumer demand, providing for open routes, capacity, frequencies, designations, and pricing.
It also allows for cooperative marketing arrangements. That includes code sharing with domestic Indian carriers to aid in making reservations and giving a greater choice of flights. The deal will further allow all-cargo operators to operate in either country without directly connecting to their homeland.

India's tourist inflow neared 5 million in 2004 mostly from the US and Europe but the tourism sector was crippled by the unavailability of seats. The latest move now has the potential of changing India's tourism scene.