Government approves renewed ASA between India and Finland

In the modernized ASA, articles on co-operative marketing arrangements and inter-model services have been introduced. This modernized ASA has the potential to spur greater trade investment, tourism and cultural exchange between the two countries besides bringing it in tune with the developments in the international civil aviation scenario.

Earlier, bilateral air services consultations between India and Finland were held on 26th November, 2008 and both sides agreed to modernize the existing Air Services Agreement (ASA) signed on 18th July, 1995. The salient features of the last round of bilateral air services talks between the two countries on 26th November, 2008 are:

• It was agreed that new Articles on ‘Co-operative Marketing Arrangements’ and ‘Inter-Modal Services’ shall be incorporated in the ASA between India and Finland.

• It was also agreed that in addition to the existing points of call, the designated airlines of each side shall be entitled to operate code share services to any two points in the territory of the other side to be specified later.

• An Open Sky for all cargo services has been agreed.

The designated airlines of Finland are now entitled to operate 7 frequencies/week with any type of aircraft each to Delhi and to Mumbai or Chennai, subject to the condition that only after operating 7 frequencies out of one of the airports, the Finnish designated airlines shall be permitted to operate to/from other airports.

On the other hand, the designated airlines of India are now entitled to operate 14 frequencies/week with any type of aircraft to Helsinki and one other point of call in Finland to be specified by Indian side, without any restriction on the number of frequencies that can be operated to any one point.

There shall no provision of mandated commercial agreements between the airlines for unilateral operations including the exercise of 5th freedom rights.

The provision of multiple designation has been agreed and now both sides can designate any number of airlines as they wish.

Both sides have agreed for Open Sky all cargo operations.

The two delegations also agreed to modernize the existing ASA and reached an agreement on the amendment of the articles of ASA on Definitions, Designation of Airlines, Capacity provisions, Co-operating marketing arrangement, Pricing), Aviation security and Insertion of a new Article on Safety).

As per the MOU, dated 18th May, 2006 the Finnish carriers are entitled to operate 7 services/week with any aircraft type each to Delhi and Mumbai or Chennai subject to condition that only after operating 7 flights out of one of the two airports, the designated airlines of Finland shall be permitted to operate to/from the other airport.

The Finnish authorities requested for the permission to operate 6 services/week on route Helsinki – Delhi v.v. and 4 services/week on route Helsinki – Mumbai v.v., with the exemption of the condition of operation of 7 services to one of the points of call in India before starting operation to the second point. The matter was examined and the permission has been granted.

(c) Centre for Asia Pacific Aviation. Date posted: 11-Sep-09

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