Cabinet approves signing of new Air Services Agreement between India and Serbia

Agreement may spur greater trade, investment, tourism and cultural exchange between two countries

The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for updation of the existing Air Services Agreement (ASA) between India and Serbia which was signed on 31 January 2003. The updation is as per latest International Civil Aviation Organization (ICAO) template keeping in view the latest developments in civil aviation sector and with an objective to improve the air connectivity between the two countries.

The essential features of the new Air Services Agreement are as follows:

(i) The open sky has been formalized with Serbia as per National Civil Aviation Policy. Now the Indian carriers can operate to any points in Serbia from points in India. Whereas the carriers of Serbia can establish direct operation to 4 Metros - New Delhi, Mumbai and 2 more points to be specified later. Apart from this through routing flexibility any intermediate and beyond point can also be served by the designated carriers of both sides.

(ii) The designated airlines shall be entitled to exercise domestic code share operation to any four (4) additional points in the territory of the other Party over and above the points specified in route schedule, These 4 points may be specified at any time.

(iii) The designated Airline of each party can enter into cooperative marketing arrangements with the designated carriers of same party, other party and third country.

(iv) It will not only provide direct connectivity but also connectivity through 3rd country carriers, which may also be viable for Indian carriers.

(v) Both countries shall be entitled to designate one or more airline. In earlier arrangement only maximum of two airlines of could be designated by each side.

The new updated and liberalized Air Services Agreement between India and the Serbia has the potential to spur greater trade, investment, tourism and cultural exchange between the two countries bringing it in tune with die developments in the civil aviation sector. It will provide enabling environment for enhanced and seamless connectivity while providing commercial opportunities to the carriers of both the sides ensuring greater safety and security. As of now there is no connectivity between the two nations and the revised agreement may lead to establishing connectivity between the two countries.

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