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A Memorandum of Understanding on the Civil Aviation sector between the Indian and Chinese Government was signed here today. This is pursuant to the technical level talks held between the two countries at Beijing on January 23, 2005 and bilateral civil aviation consultations held in New Delhi on 16-17 March 2005.
According to the Memorandum of Understanding, both the countries can designate one or more airlines to operate on the specified routes. The substantial ownership and effective control of the designated airlines shall remain with the government of the country or its nationals.
The airline(s) designated by the Government of India shall be entitled to operate scheduled air services in both directions on the following routes:
· Any points in India – any 3 intermediate point – any 6 points in China at its discretion – any 3 beyond points with not more than 2 points in one region.
The airline(s) designated by the Government of the People’s Republic of China shall be entitled to operate scheduled air services in both directions on the following routes:
· Any points in China - any 3 intermediate points – any 6 points in India at its discretion – any 3 beyond points with not more than 2 points in one region.
For all cargo services the designated airlines of both the countries will be entitled to have unlimited third, fourth and fifth freedom traffic rights with unlimited capacity entitlements for dedicated cargo services. It was also agreed that the designated airlines of both the countries can co-terminalise any two points in its own territory and/or any two points in the territory of the other party without any cabotage rights with the exception for airlines designated by India to combine Beijing and Shanghai, Beijing and Guangzhou, Shanghai and Guangzhou. It was also agreed to consider the removal of restrictions of co-terminalise of Beijing, Shanghai, Guangzhou in due course.
The designated airlines of both countries will have the following capacity entitlement for combination services:
· 14 weekly frequencies as of 2005 IATA summer season
· 28 weekly frequencies as of 2005 IATA winter season
· 42 weekly frequencies as of 2006 IATA summer season
It was also agreed that not more than 21 weekly frequencies may be operated by any designated airlines of one country to any destination point in the territory of the other country.
The designated airlines of both the countries shall now enjoy the fifth freedom traffic rights on the intermediate and/or beyond points specified in Route Schedule for combination services subject to not more than 14 weekly frequencies to be operated by any designated airlines to any point. It was also agreed that the designated airlines of both countries may co-terminalise any two points in its own territory.
Charter operations between the two countries will be governed by the charter regulations of the respective countries. Considering the operation needs of airlines to meet market demand combination services and cargo services will be operated with dry leased aircrafts. Both the countries have also agreed on specified code sharing arrangements.
The MoU which was signed by Shri Ajay Prasad, Secretary, Civil Aviation for India and his counterpart from China will take effect from today.
MC/GK
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