Cabinet approves signing of Air Services Agreement between India and Fiji

•  The Union Cabinet has given its approval for signing of new Air Services Agreement (ASA) between India and Fiji.
• The Agreement is for updation of the existing Air Services Agreement (ASA) between the two countries which was signed on 28th January, 1974. The updation is as per latest ICAO template keeping in view the latest developments in civil aviation sector and with an objective to improve the air connectivity between the two countries.
• A draft text of Air Service Agreement has been finalized in consultation with Ministry of Law & Justice (Department of Legal Affairs), Ministry of Finance (Department of Economic Affairs, Department of Revenue), Ministry of External Affairs, Department of Commerce and Ministry of Tourism.

The essential features of the Air Services Agreement are as follows:

• Both countries shall be entitled to designate one or more airline.
• The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion and sale of air services.
• The designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes. The routes and frequencies shall be decided subsequently.
• The designated airline will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations.
• The designated Airline of each party can enter into cooperative marketing arrangements with the designated carriers of same party and other party.
• Apart from the above, the ASA also has the provisions relating to Revocation or Suspension of Operating Authorization, Principles governing operations of agreed services, commercial opportunities, safety related clause etc. that were incorporated in the line of Indian model ASA.
• The existing Route Schedule annex to the ASA has also been revised and new points of call have been added for enhanced connectivity. Now Indian carriers can operate to any points in Fiji from points in India whereas the carriers of Fiji can establish direct operation to Delhi, Mumbai and Chennai in India and by code share with Indian carriers to Bangalore, Kolkata, Hyderabad apart from points given for direct operation. Besides this, Kochi, Varanasi, Ahmedabad and Amritsar may be served through domestic code share operations.

Analysis(Indo- Fiji Relations):

• India’s links with Fiji commenced in 1879 when Indian laborers were brought to Fiji under indenture system to work on sugarcane plantations. Between 1879 and 1916 around 60,000 Indians were brought to Fiji.
• Prior to Fiji’s independence in 1970, India had a Commissioner since 1948 to look after the interests of people of Indian origin. The Commissioner’s post was upgraded to that of High Commissioner after independence.
• India extended US$ 50.4 million Line of Credit in July 2005 for up-gradation of sugar industry in Fiji. GOI has extended the moratorium period of the LOC by another 2 years in July 2012, bringing the total moratorium period to 8 years.
• Indo-Fijians numbered about 51 percent of the country's population in 1966, i.e., four years before Fiji gained independence, but it went down to 38 percent in 2007 and is projected to decline further to 26 percent by 2030. Their large-scale migration to Australia, New Zealand and elsewhere for economic reasons is a cause of worry to Fiji
• India has shared its developmental experience and expertise as well as technological resources with Fiji. Relations have strengthened with mutual cooperation and new links have been established.
• India has focused its cooperation with Fiji on human and institutional capacity building and infrastructure development. It has assisted in implementing projects in diverse areas - climate change adaptation, information and communication technology, waste management systems, remote sensing, hydrographic survey, telemedicine, public transport, education, irrigation systems, fisheries, agriculture, food security, etc.
• Fiji has been an important participant in the Indian Technical and Economic Cooperation programme (ITEC) which was launched in 1964 as a fully funded bilateral programme of assistance of the Government of India. Utilization of capacity building and training slots to Fiji has grown steadily over the years.
• India’s trade with Fiji has increased manifold over the years. India has also extended a large number of Lines of Credit for development of infrastructure in Fiji. In addition, India also provides grants-in-aid to Fiji for emergency relief, disaster relief, humanitarian assistance and also developmental projects.
• Besides this, India also provides humanitarian assistance to Fiji ,understanding its vulnerability to natural disasters like cyclones, hurricane, floods and tsunamis.

By: Vishal