Cabinet approves Air Services Agreement between India and Guyana

Source: The post is based on the article “Cabinet approves Air Services Agreement between India and Guyana” published in Indian Express on 23rd February 2023

What is the News?

The Union Cabinet has approved the signing of the Air Services Agreement between the Government of India and the Government of Guyana.

What is an Air Services Agreement(ASA)?

An Air Transport Agreement(ASA) is a bilateral agreement to allow international commercial air transport services between signatories.

The bilateral system has its basis under the Chicago Convention and associated multilateral treaties.

The agreement is based on the principles of sovereignty of nations, nationality of carriers and reciprocity in terms of commercial opportunities for the designated airlines of each side.  

How do ASAs work?

The ASAs are concluded bilaterally, usually on the basis of reciprocity and fair/equal opportunity, and provide the legal framework for scheduled air services between two countries.

Under these ASAs, traffic rights and capacity entitlements are exchanged between the countries on the basis of market requirements.The ASAs clearly specify the “entitlements” of the designated airline(s) of both countries in terms of frequency of operations, number of seats, points of call etc.

Once such an agreement is signed, each country is free to allocate the bilateral rights to its respective airlines.In India, the government owns these entitlements and subsequently allocates them to an airline upon request.

Why has India signed an Air Services Agreement with Guyana?

Indians have a sizable presence in Guyana and are the largest ethnic group, comprising about 40% of the population as per the 2012 census.  

The signing of the Air Services Agreement with Guyana will enable a framework for the provision of air services between the two countries.