India may join US, EC to liberalize aviation sector

New Delhi: India may join seven other nations and the European Commission which have signed an agreement to liberalize state control, enabling their airlines to access foreign capital and seek mergers and acquisitions worldwide.
Two top global aviation bodies, ICAO and IATA, appealed to governments, including that of India and China — both growing aviation hubs — to follow suit and allow open market access to their airlines, soon after the signing ceremony of the pact Monday in Montebello, Canada.
The signatories to Multilateral Statement of Policy Principles on implementating bilateral air service agreements (ASAs) include major players like the US, Singapore and UAE, besides Europe, which together constitute 60% of the global aviation sector.
The ceremony, broadcast through teleconference, took place in the presence of the president of the International Civil Aviation Organization, Roberto K Gonzalez, and his IATA counterpart Giovanni Bisignani.
Maintaining that some countries had sought more time on the issue, Bisignani said in his recent discussions civil aviation minister Praful Patel had said the Indian government wanted more time to formalise the agreement.
India had approved the idea which was mooted by the International Air Transport Association at its annual meeting in Istanbul last year.
Besides the mounting losses of the airlines, primarily due to high oil prices, the 65 year-old bilateral system of ASAs “restrict how airlines can do business in ways that no other industry faces,” Bisignani said.
17/11/09 PTI/Live Mint

To Read the News in full at Source, Click the Headline

Categories: Foreign Nov 2009, Indian Aviation- In General Nov 2009, New Nov 2009