Govt for easing aviation rule to link smaller nations

The civil aviation ministry is contemplating relaxing the substantial ownership and effective control clause in its air services agreement with smaller countries.

The SOEC clause says only airlines owned by a country or its citizens can fly from the nation concerned to India and use the quota of seats allotted under a bilateral pact between the countries.

"At the International Civil Aviation Organisation conference this year in Mumbai, our focus was on having bilateral relationships with African countries, that many reciprocated.

"But many said they cannot afford an airline and cannot sign the bilaterals with a substantial ownership clause," said a ministry official, requesting anonymity.

The official added they were looking at changing the norm to bring all these countries on board.

At the conference, India signed bilateral agreements with Uganda and Mozambique, but could not ink a pact with many others because of the SOEC clause.

India is also raising objections to the operations of Swiss International Airlines (called Swiss)

and Austrian Airlines on the grounds that they had violated the SOEC clause mandated under the bilateral ASA signed between India and the two countries.

It had also threatened to stop all their services, stating the ownerships of the airlines were not from their respective countries.

The ownership of these airlines changed after Lufthansa, a German carrier, acquired these two carriers.

Lufthansa had acquired Swiss in 2005 and Austrian in 2009.

The former has been operating in India since 2005, while the latter since 2010.

Both these airlines have replied they are owned by trusts based out of their countries.

The civil aviation ministry is examining these claims, and has sought the law ministry's views on the matter.

While Swiss operates 14 flights a week, Austrian operates 11 from Delhi and Mumbai.

The two are developing new hubs for Indian travellers flying to the US and other European countries.

As much as 63 per cent passengers of Swiss and 86 per cent of Austrian fly under the sixth freedom carriage to and from India. (They transit from these countries to other foreign destinations.)