The Cabinet on Tuesday approved signing of the protocol to amend the air services agreement between India and Switzerland, which will allow more number of airlines to start flight operations between the two countries.
"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," said a government press release.
As per the amendments, the "designated airlines" would be free to decide reasonable tariff without resorting to anti-competitive and predatory behaviour, the release said.
According to the press release, the amendments state that "designated airline(s) of each country may use aircraft leased from other company or airline(s), but lessor not to exercise the rights it doesn't have".
Before a country's airline can operate international flights, a "bilateral air services agreement" has to be negotiated to decide how many total flights (or seats) each week can be allowed from one nation to another.
The agreement also notifies the number of destinations in each country to which flight operations can be conducted by other country's airline.
The number of airlines that can fly between both the countries will also be decided in the air services agreement.
"The Union Cabinet chaired by Prime Minister Narendra Modi has approved the signing of the protocol to amend the agreement between the Swiss Federal Council and the Government of India related to air services and to exchange diplomatic notes with Switzerland for bringing the amendments in the air services agreement into force," the press release said.