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The Union Cabinet today gave its approval for the signing and ratification of Air Transport Agreement (ATA) between India and USA. The Agreement is to be signed during the visit of US Secretary of Transportation to India during April 13-15, 2005.
The proposed ATA would replace the existing ATA signed with USA in 1956. Some of the important changes in the proposed ATA, as compared to the ATA of 1956 are as follows :
(i) While the existing ATA provides for unlimited access to the airlines of both parties the number of points of call in either country is restricted to four destinations. This restriction on points of call has been removed in the revised ATA.
(ii) The existing ATA provides for code-share rights to any five points in the respective territories of both countries. This restriction on the number of points has been removed in the revised ATA.
(iii) The proposed ATA removes all existing restrictions on Fifth Freedom traffic through intermediate points and provides for greater operational flexibility.
(iv) An Article on “Safety” has been added in the revised ATA.
The removal of restrictions on points of call, code share rights and Fifth Freedom rights would provide greater commercial opportunities to Indian carriers and would enable them to wean away traffic on the India-USA route from third country carriers.
The revised agreement retains the basic spirit of the existing agreement on most other issues include:
(i) Multiple designations of airlines
(ii) Reasonable and non-discriminatory user charges
(iii) Non-discriminatory treatment in respect of Customs duties and charges.
(iv) Unlimited access to the airlines of both sides.
(v) Arbitration provision for dispute settlement.
(vi) Acceptance of multilateral air transport conventions.
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