 | [We can expect airfare between India and US to come down from the
current $1,000-$1,500 to around $700 in the next 12 to 18 months]
IANS[ MONDAY, JANUARY 17, 2005 09:45:47 PM ]
New Indo-US aviation mantra: Less is more
NEW DELHI: The seminal India-US aviation pact that is expected to open
the floodgates of air travel between the two countries is expected to
bring about a drop in airfares by 20 to 30 per cent, say industry
experts.
The open skies agreement, which India and US have decided on, seeks to
remove all restrictions on the number of flights, airlines and
destinations between the two countries, significantly enhancing the
options of commuters.
US Transportation Secretary Norman Y Mineta and Indian Civil Aviation
Minister Praful Patel said the Air Transport Agreement would lead to an
exponential growth, giving a greater fillip and thrust to the existing
passenger, air cargo and mail services.
"We can expect airfare between India and US to come down from the
current $1,000-$1,500 to around $700 in the next 12 to 18 months," said
Keyur Joshi, COO of an online travel portal.
Joshi said more flights and more seat capacity would substantially
reduce the fare, benefiting travellers and boosting tourism and trade.
"Besides, we can have more flights to interior points like Houston,
Dallas, Denver, Washington etc."
Travelling would become more frequent between the countries after the
new agreement replaces the existing pact of 1956 that limited the
number of airlines flying between the two countries, cities that could
be served and the frequency of service.
Under the new agreement, airlines of both countries would be allowed to
select routes and destinations based on consumer demand, without
seeking the permission of each other's countries.
The agreement allows bilateral code-sharing with domestic Indian
carriers and also permits all-cargo operators to operate in either
country without involving the two governments.
Code-sharing with Indian carriers would facilitate easier reservations
and more choice of flights.
Buoyed by the development, India's flag carrier Air-India is looking to
add flights to Washington, Houston and San Francisco after the new
agreement is in place.
"Earlier, for instance, there were restrictions against flying to both
Los Angeles and San Francisco. Now there will be none," said an
Air-India official.
The restrictions on number of flights to American cities would also go.
But besides Air-India, other Indian carriers like state-run Indian
Airlines and private operators Jet Airways and Air Sahara are also
eyeing a share in the most lucrative destinations.
The traffic between India and the US stands at two million passengers a
year at present. Only three carriers offer direct flights between India
and the US -- Air-India and the American operators Delta Airlines and
Northwest Airlines.
But with the new pact, more American airlines like Continental Airlines
and United Airlines are likely to operate to Indian cities.
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