India and Nepal are expected to soon sign a revised air services agreement that will lead to 'open skies' arrangement in cargo sector and further liberalise passenger flight operations.
The approval for signing the Air Services Agreement (ASA) between the two countries was given today by the Union Cabinet, chaired by Prime Minister Manmohan Singh.
"This ASA has the potential to spur greater trade investment, tourism and strengthening the cultural exchange between the two countries besides bringing it in tune with the developments in the international civil aviation scenario," an official spokesperson said.
The spokesperson said the enhancement of India-Nepal relations has been facilitated by the growth in air services between the two countries.
The new Air Services Agreement, based on International Civil Aviation Organisation (ICAO) template, was negotiated and initialled in September 2009 with an aim of widening the field of aviation.
Sources said the revised agreement would lead to 'open skies' arrangement in cargo sector and liberalise passenger flight services between the two countries, except for a few metros.
The remaining metros will be covered in due course, they said.