NEW DELHI, 15 April 2005 — Taking Indo-US relations to a new high both the countries signed a civil aviation agreement here yesterday to allow each other’s carriers to operate as many flights as they want between the two countries.

The deal also allows cargo carriers to operate in either country without directly connecting to their homeland. Currently, no US airline operates a non-stop service to India.

The “open skies” accord, signed by Indian Aviation Minister Praful Patel and US Transportation Secretary Norman Mineta in New Delhi, replaced a 50-year-old treaty that limited flights between the two countries as well as ports of call.

Indian aircraft now operate 28 flights a week to the United States with nearly two million passengers traveling between the two countries annually. “This agreement will result in more services, more options, more innovation and lower prices,” said Mineta.

US-based Delta Airlines plans new connections between New York and the southern Indian city of Madras while Northwest Airlines intends to start flying between Minneapolis and India’s IT hub Bangalore.

Earlier this month, US-based Continental Airlines announced it will launch daily non-stop flights between New Delhi and New York. Most carriers plying the route between India and the United States make stopovers in Europe. “There’s no better symbol for how much closer our two nations are than the fact that travelers will soon be able to step onto a plane in New York and land in New Delhi in a matter of hours,” Mineta said.

The large number of Indian immigrants to the US as well as increased business ties have created a big demand for increased flights.

The agreement was proposed last year by the US, which already has dozens of open skies deals with other countries.

Under the old agreement, India did not allow US-based carriers to increase their flights to the country unless cash-strapped state-run Indian flag carrier Air-India was able to match the increase.

Air-India will add flights to three new US routes — Washington, San Francisco and Houston — following the new agreement, according to Indian officials. Private Indian airlines, which were until now not allowed to fly to the United States, are likely to add US destinations.

After years of allowing only Indian state carriers to fly lucrative long-haul routes, the government in January bowed to burgeoning passenger demand and opened the routes to private airlines. Patel urged US firms to invest in aviation infrastructure such as airports in the country, which must be revamped to cope with soaring passenger growth in one of the world’s fastest-growing economies.

The US committed $500,000 for a private-public program aimed at strengthening India’s growing civil aviation industry. The Aviation Cooperation Program will help identify and support India’s civil aviation through technical assistance, job training and personnel exchange programs between the two countries.

Air traffic safety and efficiency, airport security, infrastructure development, flight standards, regulation and certification are the other areas identified for cooperation. The US Trade and Development Authority (USTDA) committed $500,000 for the program modeled on the one existing between the US and China.