INDIA, MALAYSIA TO REVIEW 1967 AIR SERVICE PACT

BY P.VIJIAN

NEW DELHI, Nov 14 (Bernama) -- In the wake of rising demand in the civil
aviation sector, India and Malaysia have agreed to review their air service
agreement signed in 1967 to ensure airline operators from both sides enjoy
better traffic rights.

"Both sides have agreed to discuss and consult their respective agencies to
update the agreement. We need to include new clauses like tariff, security and
cooperation in marketing," Transport Ministry under-secretary P. Chandrasekaran,
who led the Malaysian delegation told Bernama after concluding the air services
negotiations at the Indian capital here.

During the talks with the Indian Civil Aviation officials, Malaysia asked
India for more traffic rights for Malaysian carriers to fly to bustling
Indian cities.

Besides Malaysia Airlines (MAS) flying to various destinations, low-cost
carrier, AirAsia, is to launch its inaugural flight to Tiruchi next month.

We are asking for more traffic rights so that AirAsia can also fly to
India. The Indian side has been receptive and the talks went well,"
Chandrasekaran said.

Based on last year's air service pact, Malaysia was allotted 20,400 seats
under Part A of the agreement, which allows Malaysian carriers to fly to six
metropolitan cities -- Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai.

MAS is using 10,000 seats under Part A and it is up to the government to
re-allocate the balance of the seats.

Under Part B, Malaysia enjoys the right to fly to 18 Indian airports.

"We've also asked permission to fly to Kathmandu and Dhaka from the six
(Indian) destinations. There are a lot of workers travelling and we want to fill
up the plane and they have agreed to this, but we are not allowed to pick
up passengers from these airports," he added.
-- BERNAMA