SINGAPORE, July 19: After a gap of close to four decades, the governments of Singapore and India have concluded a new bilateral air services agreement, allowing the aviation sectors of both countries to expand their capacity by 40 per cent (six B747 units weekly) over three years and making available a code-sharing arrangement for their respective airlines. This marks a compromise on the part of both Air India and Singapore Airlines. The latter had originally sought a four-year tenure for the pact, while AI had resisted extending its validity beyond two years.

What makes the agreement ``historic'', according to Civil Aviation Secretary M K Kaw, who signed on behalf of India, is the fact that it is not just about capacity enhancement or code sharing. The cooperation envisaged has a much broader scope. ``The aviation sectors of both countries can now collaborate in terms of staff training consultancy, airport design, ground handling, inflight catering facilities. We can tap Singapore's expertise in many of these areas,'' he pointed out, in an interview just an hour before his departure for New Delhi.

The agreement allows an increase in capacity entitlements of 800 seats per week each year for the next three years. The pact, reached here at the midnight hour last night after protracted negotiations, will come into force within three months.

This is the largest single increase in capacity in bilateral consultations since the last Singapore-India Air Services Agreement, which was signed in 1958.

The agreement also encapsulates a code-share arrangement between Air India and Singapore Airlines, which will make available to Air India a choice of three additional destinations beyond Singapore from an array of destinations such as Saigon, Brunei, Brisbane, Christchurch, Yangon and Bali (Denpasar).

As a quid pro quo, SIA has been granted a new point of call in India Trivandrum. Originally, SIA had sought three new destinations, but the other two Bangalore and Hyderabad, were not sanctioned, ``pending the delay in construction of new airports in these cities,'' said Kaw.

He said Singapore was also very happy with the agreement as ``it will allow them to utilise the additional capacity they will acquire with their new fleet of Boeing 777s.''

Both Air India and SIA were keen on increasing frequency of flights in the India-Singapore sector, which would allow them market access to destinations beyond where either of them has a strong presence. There is also a plan to merge the operations of Indian Airlines and Air India in this lucrative sector, to get them to pool their three flights a week each into a daily flight into Singapore.

The Indian delegation which participated in the two-day talks from July 17-18 was led by Kaw, while the Singapore side was headed by Communications Ministry Permanent Secretary Teo Ming Kian.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.