Govt plans more 'open sky' deals

Close on the heels of proposing an 'open sky' agreement with 10 Southeast Asian countries, the government said on Wednesday that it is working on a similar move for other countries too as part of a comprehensive open bilateral policy.

"The proposal of the prime minister at the recent India-ASEAN summit will herald such bilaterals with other countries. Government is aware of all the demands of various countries and airlines and we are going in for a comprehensive open bilateral policy," Minister of State for Civil Aviation, Rajiv Pratap Rudy told reporters in New Delhi.

Also Read India opens its skies to ASEAN 'Open sky' policy to hit A-I, IA earnings

He, however, said the economic impact of such agreements on the country's aviation sector would be analysed before committing to any such policy.

"Open sky is like World Trade Organisation. It is most desirable but to achieve it we have to see our own economic cost," he said at the sidelines of a EU-India aviation summit.

Terming the move with ASEAN as the "beginning of a commitment" to 'open sky', Rudy said the agreement would revolutionise aviation, trade and tourism in the country.

He also asked state-owned Indian Airlines and Air-India to be prepared to face competition.

"We have restricted, protected bilaterals. We can't keep on protecting IA and A-I at the cost of the economy of the country. They have to compete. We are there to support them," the minister said.