Question : AIR SERVICES BETWEEN INDIA AND DUBAI

(a) whether a Memorandum of Understanding has been signed between India and Dubai on May 26, 2000 relating to operation of air services between both the countries;

(b) if so, the details of the agreement reached in this regard and the benefits likely to be accrued therefrom;

(c) whether the proposals for such an agreement between India and Dubai were turned down earlier by the Government;

(d) if so, the details thereof and the number of occasions on which the above proposals were turned down alongwith the reasons therefor; and

(e) the justification for reaching an agreement on May 26, 2000 keeping in view of the fact that proposals for the same agreement were turned down by the Government on earlier occasions?

THE MINISTER OF CIVIL AVIATION (SHRI SHARAD YADAV)

(a) and (b): A Memorandum of Understanding has been signed between the Government of India and the Government of UAE on 26.5.2000 which provides for increase in the existing air seat capacity between India and Dubai from 5400 seats/week to 7400 seats/week in each direction for the designated airlines of both sides in a phased manner by September, 2002. The agreement also enables the designated airline of UAE to operate services to Chennai effective from September, 2000 and to Cochin or Trivandrum, as may be decided by the Government of India, effective from September, 2002 under a commercial arrangement with the designated airline of India. It also enables the designated airline of India to exercise traffic rights beyond Dubai to points in Europe, UK and USA. The increased traffic rights will provide better travel facilities between India and Dubai and better commercial opportunities to the airlines of both sides.

(c) and (d): During the earlier round of bilateral discussions held in January, 2000, no agreement could be reached as the UAE delegation insisted on an immediate increase in air seat capacity from 5400 seats/week to 7900 seats/week.

(e): Does not arise in view of (c) above.