9-Mar-2011 8:25 AM

India and Brazil sign air services agreement

India and Brazil signed (08-Mar-2011) a bilateral air services agreement (ASA) on 08-Mar-2011. The new ASA is based on the liberal ICAO template and paves the way for increased air connectivity between the countries. It supersedes the agreement signed in Sep-2006. As per the new Air Services Agreement:

  • Both countries shall be entitled to designate any number of airlines;
  • The designated airlines of each side are entitled to operate any point in each other’s territory, via any intermediate point and beyond to any point;
  • The designated airlines of each side are entitled to operate 21 services/week in each direction with any type of aircraft not exceeding the capacity of B747 aircraft;
  • There is open sky for all cargo operations between the two sides;
  • The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion and sale of air services;
  • Either country, on the basis of reciprocity, shall exempt a designated airline of the other country, to the fullest extent possible under its national law from customs duties, excise taxes, inspection fees and other national duties and charges on specific items (aircraft, fuel, lubricating oil, spare parts of aircraft/engine etc) introduced into the territory of the other country, retained or taken on board by the designated airline and which are intended for use in operating the agreed services;
  • The capacity to be provided and the frequency of services to be operated by the airlines shall be agreed between both parties;
  • Neither party shall impose or permit to impose on the designated airline of the other party user charges higher than those imposed on all airlines operating and its own airlines operating similar international services;
  • The designated airline will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations. The designated airlines of both parties shall not be required to agree on the fares to be applied;
  • The designated airlines may enter into co-operative marketing arrangements, such as codeshare, block space or any other JV agreement, with designated airlines of both parties and from a third country. [more]

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