What does the notification say?
The US' Department of Transportation (DOT) has accused the Indian government of engaging in "unfair and discriminatory practices" on charter air transportation services to and from India.
The department in its notification said, “We are notifying National Aviation Company of India Ltd, (Air India), a foreign air carrier of India that holds economic authority from Dept that it'll be required, effective 30 days after the service date of this Order...: Department of Transportation, USA. ...to obtain prior approval from the Department in the form of a statement of authorization before operating any Third- and/or Fourth-Freedom charter flights to or from the United States: Department of Transportation, United States of America.”
What does it translate into?
It effectively means that Air India will not be allowed to operate any chartered flight on Indo-US routes from July 22 onward without specifically permitted by the US' Department of Transportation (DOT), as per the DOT order issues on Monday, as per the India Today report.
The order will allow US officials "to scrutinize charter flights by Indian carriers on a case-by-case basis. Through this order, the department "seeks to restore a level playing field for US airlines" under the US-India Air Transport Agreement.
"Effective 30 days from the service date of this order, it shall not perform any Third-and/or Fourth-Freedom charter flights unless the Department has granted it specific authority in the form of a statement of authorization to conduct such charters," the DOT said.
The notification clarified saying, "Air India shall file applications for statements of authorization required... at least 30 calendar days before the proposed charter flights."
The Third Freedom rights mentioned in the notification under the Chicago Convention rules give permission to an airline to operate flights from one's own country to another country whereas Fourth Freedom allows an airline to fly from another country to one's own country.
How many chartered flights were operated by India?
Air India had released a schedule for additional flights on June 3 that includes 49 US-India round-trip charter flights that are scheduled to operate between June 10-July 1.
"On June 13, Air India released a schedule for 10 additional repatriation flights between June 20-July 3," it said.
Prior to the March 25th suspension of scheduled passenger services, Air India operated 34 round-trip flights per week to the United States.
"With 59 flights advertised for the period from June 10 to July 3, 2020, Air India would be performing charter operation at a rate of 53 per cent of the operations it previously performed as scheduled services," the DOT stated.
What does the US allege?
This typical situation, which allows Indian airlines to perform services pursuant to their rights under the "US India Air Transport Agreement" but the US carriers cannot, creates a competitive disadvantage for US carriers vis-à-vis Indian carriers, it noted.
The notification mentions the reason of the scrutiny as, “We are taking this action because the Government of India (GoI) has impaired the operating rights of US carriers and has engaged in discriminatory and restrictive practices with respect to US carrier services to and from India: Department of Transportation, USA.”
Air India started international chartered flights under Vande Bharat Mission from May 6 to help people stranded abroad return home amid the pandemic. It has been operating chartered flights on Indo-US routes since May 18 where tickets on both the legs are sold.
The chartered flights on Indo-US routes started operations from May 18 where tickets on both sides are sold.