India, Thailand sign agreement on air capacity

BANGKOK Thai and Indian aviation authorities have signed a landmark agreement that doubles airseat capacity between the two countries.

The move comes as a delight to the Thai CEI industry, which is keen to take advantage of the potential of the fast-developing South Asian giant. The Tourism Authority of Thailand has singled out the CEI segment as a priority target for its marketing efforts in India. Thai and Indian negotiators, meeting in early February, agreed to raise seat capacity to about 18,000 per week, up from 9,700 per week, with more airlines getting more rights to cities in both countries. Thai Airways International has gained rights to fly to Hyderabad and increase flights to the IT capital of Bangalore as well as Chennai. Meanwhile, Indian airlines have gained access to Phuket and Chiang Mai. The Thai flag-carrier's budget unit Nok Air has been included in the agreement, while Jet Airways and Air Sahara have also been listed as designated airlines from the Indian side.