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This is an archive article published on March 9, 2008

On the cards, an inter-modal pact between India and EU

India is set to hold a fifth round of meeting with the European Union later this month to negotiate on the ‘horizontal agreement’ on civil aviation...

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India is set to hold a fifth round of meeting with the European Union later this month to negotiate on the ‘horizontal agreement’ on civil aviation and ensure that it works equally in its favour. An Indian delegation is set to go to Brussels for the meeting.

As per the agreement, all European countries will be treated as a single entity and their airlines will be able to fly to India from any European destination. India wants, in lieu, Indian carriers — flying to European destinations — to be allowed code sharing rights across all member states and passengers to be allowed to travel by trains and buses in those cities on their airline tickets. According to the agreement, regardless of nationality, any airline from Europe can fly to India from any destination, though within the framework of bilateral agreement that India has with them. So, a British Airways flight can fly in passengers from Spain to India, provided it is within the number of flights allowed between Spain and India as per the bilateral agreement. India has 24 bilateral agreements with European nations.

The negotiations could prove critical for Indian carriers that are keen on setting base in Europe. While Jet Airways, the only private Indian carrier with permissions to fly abroad, has made Brussels its European hub, Air

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India is likely to choose Munich or Vienna as its European hub.

“The Indian delegation will suggest that India be allowed code sharing rights to all destinations under member countries of EU. We have suggested that inter-modal transport ticketing be allowed which means that if you fly to say Germany, then on the same ticket you will be able to travel by bus and train. If it comes through, code sharing across Europe will make it commercially an attractive market. Besides, unlimited freighter services to EU is another point of negotiation,” said a senior official of the Ministry of Civil Aviation. Officials added that the response to these suggestions from the EU has been quite positive.

Civil Aviation Minister Praful Patel had visited Brussels in October 2007 to extend co-operation between the EU and India. EU is keenly pushing for a horizontal aviation agreement with India, which is one of its largest trading partner.

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