Context:

In the latest development, Russia announced that it was leaving the Open Skies Treaty (OST).

About

The Open Skies Treaty

• The landmark treaty was signed in 1992.
• It had 35 signatories, including key players US and Russia, along with one non-ratifying member (Kyrgyzstan).
• The Open Skies Treaty, which entered into force in 2002, permits countries to fly unarmed aircraft with cameras and other sensors over the territory of the treaty’s other member states.
• Each party to the treaty has two annual quotas:
  • The number of flights it may conduct over other treaty parties (active quota)
  • The number of over-flights that it must accept (passive quota)
• Under the treaty, a member state can “spy” on any part of the host nation, with the latter’s consent.

 

India’s Open Sky agreement

• India has Air Service Agreements (ASA) with 109 countries covering aspects relating to the number of flights, seats, landing points, and code-share.
• In this regard, the Policy will be as follows:
  • The government plans to liberalize the regime of bilateral rights leading to greater ease of doing business and wider choice to passengers.
  • The government will enter into an ‘Open sky’ ASA on a reciprocal basis with SAARC countries and countries with territory located entirely beyond a 5000 km radius from New Delhi.
  • For countries partly or fully within 5000 km radius, where the designated carriers of India have not fully utilized 80% of their capacity entitlements, but foreign carriers /countries have utilized their bilateral rights and are pressing for an increase in capacity, a method will be recommended by a committee headed by the Cabinet Secretary for the allotment of the additional capacity entitlements.
  • Whenever designated carriers of India have utilized 80% of their capacity entitlements and seek additional capacity entitlements.
  • Indian cargo airlines with 74% FDI cannot normally be designated carriers and are not able to undertake scheduled international operations at present due to the ‘Substantial Ownership and Effective Control (SOEC)’ clause in the ASA.
• The ASA will be suitably amended in consultation with the country concerned based on the concept of “principal place of business” and “effective regulatory control” of the host country.