Friday, January 14 2005 12:42 Hrs (IST) - World Time -

Washington: India and United States yesterday (Jan 13, 2005) began talks ahead of signing a historic Open Skies Agreement, which will replace the nearly 50-year-old pact between the two countries.

US Transportation Secretary Norman Y Mineta and Civil Aviation Minister Praful Patel, who are leading the talks, hoped the new agreement would be signed in a month or two.

They were addressing a joint press conference at the US Transportation Department in Washington.

"We have before us the opportunity to give the people of India and the US a modern Open Skies Agreement that will deliver tremendous benefits for the aviation industry and for consumers in both countries, building ties between our people and creating new jobs and opportunities," Mineta said.

"Our goal is to do more than shake the cobwebs off a half-century old agreement. We need to usher in a new era where consumers, rather than the Governments, determine what markets air carriers serve and what fare and service options they provide," he said.

Patel pointed out how old restrictions are being lifted by the Manmohan Singh Government and said that industry has been "unshackled".

He said that the time has come to revise the old agreement according to the needs of the hour and in keeping with the relationship between the US and India, which is growing stronger and stronger, with trade, commerce and tourism increasing greatly between the two countries.

The talks, Mineta pointed out, were the result of informal discussions between the two Governments, during which both sides expressed interest in revising the current, restrictive agreement that dates back to 1956.

This agreement, he noted, places restrictions on the number of airlines flying between the two countries, cities that can be served, the frequency of service and pricing.

He noted that India and US are the world's two largest democracies and two of the world's fastest growing economies. Trade between the two nations totalled $ 18 billion in 2003, a 13.5 per cent increase from the previous year, and was growing at an even faster pace in 2004.

Such a relationship, he said, needs to be supported by strong commercial aviation ties, including more direct flights to serve the approximately two million passengers a year travelling between the two countries.

Both Mineta and Patel saw the prospect of a vast expansion in air travel between the two countries.

Patel said the growth in air travel in India is expected to be at least 25 per cent compounded annually. He expected the industry in India to buy at least 200 to 250 aircraft - Boeing and Airbus - over the next three to five years.

He pointed out that modernizing the infrastructure, including airports, is receiving a high priority involving both the public and private sectors, Indian and foreign.

Mineta said that he has already booked his ticket to go to India in February as he hopes to have an Open Skies agreement within a month.

The Indian delegation included Ambassador to US Ronen Sen.