Union Cabinet approved signing of new Air Services Agreement between India and Serbia

The Union Cabinet on 31 March 2017 approved the signing of a new Air Services Agreement (ASA) between India and Serbia.

The approval was given at a meeting of the Cabinet chaired by the Prime Minister Narendra Modi in New Delhi.

The essential features of the new India-Serbia Air Services Agreement are -

•    Under the new  Air Services Agreement, the Indian carriers can operate to any points in Serbia from points in India.

•    Whereas the carriers of Serbia can establish direct operation to four 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 on both sides.

•    The designated airlines shall be entitled to exercise domestic code share operation to any four additional points in the territory of the other Party over.

•    The designated airline of each party can enter into cooperative marketing arrangements with the designated carriers of the same party, another party and third countries.

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

•    Both countries shall be entitled to designate one or more airline. In the previous arrangement, only a maximum of two airlines was allowed to be designated by each side.

How the new ASA will help both the countries?

•    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.

•    It will provide enabling environment for enhanced and seamless connectivity.

•    The agreement will provide commercial opportunities for the carriers on 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.